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ARTICLE · 23 DECEMBER 2024

A Bang? A Whimper? Not So Fast: The SEC's Approach To Private Funds Evolves In 2024

Holland & Knight
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As part of its formal fiscal year (FY) 2024 priorities, the SEC's Division of Examinations identified the review of investment advisers to private funds as a key priority.

United StatesFinance and Banking
Jennifer A. Connors
Jennifer A. Connors
Jessica B. Magee
Jessica B. Magee
Allison Kernisky
Allison Kernisky
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As part of its formal fiscal year (FY) 2024 priorities, the SEC's Division of Examinations identified the review of investment advisers to private funds as a key priority. Fresh off the implementation of the Marketing Rule in late 2022 as part of the amendments to Advisers Act Rule 206(4)-1, the SEC signaled in late 2023 that compliance examinations would ramp up and include examinations of not only advisers' policies and procedures, but a substantive review of firms' implementation efforts, marketing materials, client disclosures, and books and records. This culminated in Division of Enforcement proceedings settled in September 2023 against nine registered investment advisers for misrepresenting hypothetical performance of advisory products in connection with a sweep of violations of the Marketing Rule.

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