We are excited to introduce our new Private Fund Compliance Services at True West, designed specifically for private fund advisers. These services, performed in partnership with Jim Smith from 3K Regulatory Consulting, aim to provide tailored compliance solutions to help you navigate the complex regulatory landscape with confidence.
Our offerings include custom-designed compliance programs, expert assistance with regulatory filings such as Form PF and Rule 13F, and comprehensive guidance on adhering to the latest SEC marketing rules. We provide full support during regulatory examinations, helping you prepare, manage, and respond to SEC inquiries efficiently. Additionally, we conduct thorough annual reviews to assess and enhance your compliance program and develop detailed compliance manuals and calendars to provide a clear roadmap for maintaining compliance throughout the year.
The Impact of Recent Legal Developments on Private Fund Advisers
Recent legal developments have significant implications for private fund advisers. On June 5, 2024, the U.S. Fifth Circuit Court of Appeals vacated the SEC's "Private Fund Advisers Rule," ruling that the SEC overstepped its statutory authority. This decision not only saves private funds an estimated $5.4 billion in implementation costs but also delineates the SEC's regulatory limitations under the Advisers Act. The vacated rules would have required fund managers to prepare detailed quarterly statements for investors, disclose side letter terms, and obtain fairness opinions for GP-led secondaries. With these rules now unlikely to be implemented unless successfully appealed by the SEC, private fund managers can experience some relief regarding compliance within the currently proposed timeline.
Navigating Future Regulatory Challenges
Despite this ruling, the SEC is expected to continue using existing provisions of the Advisers Act to promote transparency, fairness, and parity. The SEC’s examination and enforcement efforts will likely focus more on private fund advisers, scrutinizing practices such as expense charges, non-pro rata expense allocations, unfair side letter arrangements, and conflicts in adviser-led secondary transactions. This highlights the need for expert compliance support in a constantly evolving regulatory environment.
Commitment to Compliance Excellence
At True West, we are committed to helping you navigate these complexities with confidence. Our new Private Fund Compliance Services, in partnership with 3K Regulatory Consulting, are designed to provide the support and expertise you need to stay ahead of regulatory changes and maintain robust compliance programs. By integrating these services with our existing compliance solutions, True West provides a one-stop shop for all your regulatory and legal needs, ensuring your firm’s continued success and growth.
