New Tariffs, Old Issues: Post-Liberation Day Advisers Act Considerations For Private Fund Managers

Markets remain exceptionally volatile following the announcement of the U.S. "Liberation Day" tariffs and retaliatory measures from other countries. While the ultimate path of policy remains uncertain, recent developments are likely to exert continued pressure on valuations and liquidity across private fund portfolios (even if certain policies are paused or rolled back). Historically, in the wake of major market events, the U.S. Securities and Exchange Commission (SEC) has closely examined fund sponsors' compliance with applicable laws and regulations and adherence to guidance in core SEC focus areas, including valuations, investor disclosures, investor liquidity and borrowing activities, as sponsors navigate unusual circumstances. These are long-standing areas of regulatory concern, and the SEC has repeatedly emphasized (including during the first Trump administration)¹ the importance of maintaining robust compliance controls during periods of market stress. Given