New Private Fund Rule Compliance Date
News and Alerts
Effective Date Now Set for the Private Fund Rule
The SEC recently adopted the new Private Fund Rule for Private Funds and Private Fund Advisers.
Their release reported that the enforcement dates would rely on the rule’s publication in the Federal Register. Upon recent publication on September 14th, the enforcement dates are now set and Firms should continue to prepare.
Compliance Dates Reminder
- The Final Rule has an effective date of Monday, November 13th, 2023.
- For specification, this is Rule 206(4)-7(b) (Written Documentation of Annual Review of Compliance Program).
- Rule 206(4)-10 Audit Requirement (Registered Advisers)
- Large Private Fund Advisers ($1.5 Billion or more in Private Fund Assets)
- Compliance Date of March 14th, 2025.
- Small Private Fund Advisers (Less than $1.5 Billion in Private Fund Assets)
- Compliance Date of March 14th, 2025.
- Large Private Fund Advisers ($1.5 Billion or more in Private Fund Assets)
- Rule 211(h)(1)-2 Quarterly Statements (Registered Advisers)
- Large Private Fund Advisers ($1.5 Billion or more in Private Fund Assets)
- Compliance Date of March 14th, 2025.
- Small Private Fund Advisers (Less than $1.5 Billion in Private Fund Assets)
- Compliance Date of March 14th, 2025.
- Large Private Fund Advisers ($1.5 Billion or more in Private Fund Assets)
- Rule 211(h)(2)-1 Restricted Activities (Any Investment Adviser – Subject to the exceptions contained in the rule)
- Large Private Fund Advisers ($1.5 Billion or more in Private Fund Assets)
- Compliance Date of September 14th, 2024.
- Small Private Fund Advisers (Less than $1.5 Billion in Private Fund Assets)
- Compliance Date of March 14th, 2025.
- Large Private Fund Advisers ($1.5 Billion or more in Private Fund Assets)
- Rule 211(h)(2)-2 Adviser-Led Secondaries (Registered Advisers)
- Large Private Fund Advisers ($1.5 Billion or more in Private Fund Assets)
- Compliance Date of September 14th, 2024.
- Small Private Fund Advisers (Less than $1.5 Billion in Private Fund Assets)
- Compliance Date of March 14th, 2025.
- Large Private Fund Advisers ($1.5 Billion or more in Private Fund Assets)
- Rule 211(h)(2)-3 Preferential Treatment (Any Investment Adviser – Subject to the exceptions contained in the rule)
- Large Private Fund Advisers ($1.5 Billion or more in Private Fund Assets)
- Compliance Date of September 14th, 2024.
- Small Private Fund Advisers (Less than $1.5 Billion in Private Fund Assets)
- Compliance Date of March 14th, 2025.
- Large Private Fund Advisers ($1.5 Billion or more in Private Fund Assets)
Vigilant’s Conclusion
These rules will have major impacts on the Private Fund industry, as the SEC attempts to standardize the way information is provided to Private Fund investors.
SEC Chairman, Gary Gensler, stated that these new rules will enhance adviser transparency and integrity, providing for greater competition and efficiency in an important marketplace.
Commissioner, Caroline Crenshaw, argued that the term “private fund” is misnomer, and the impact by Private Fund Advisers on all aspects of the market warrants further regulation regardless of the “sophisticated” status of Private Fund investors.
This may take considerable resources, but Vigilant is prepared to support RIAs in whatever capacity they may need when making these adjustments.
It is vital to your Firm’s success that you take a proactive compliance approach and begin preparations now.