The US Securities and Exchange Commission (SEC) recently adopted sweeping new rules under the Investment Advisers Act of 1940 that apply in certain circumstances to non-US advisers to private investment funds.
In speaking with FundFire, partner Christine Schleppegrell said that the rules are likely to add new costs and the need for additional compliance infrastructure for managers without such resources today. Further, for non-US managers and those running offshore funds, it also could impact the decision about whether to remain within or expand further in the United States.
“It could cause some managers to reframe their thinking,” Christine added. “They would consider… the cost of complying with the new rules.”
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