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ARTICLE · 11 APRIL 2024

Private Fund Adviser Rule Q&A: Spotlight On Restricted Activities

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Editorial Note: In follow up to our summary on the SEC's new private fund adviser rules, Katten attorneys share their views on implementation questions related to a variety of new requirements...

United StatesFinance and Banking
Adam Bolter
Adam Bolter
Wendy Cohen
Wendy Cohen
Christian Hennion
Christian Hennion
Nicholas Gervasi
Nicholas Gervasi
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Editorial Note: In follow up to our summary on the SEC's new private fund adviser rules, Katten attorneys share their views on implementation questions related to a variety of new requirements applicable to advisers to private funds. In this issue, we focus on certain restricted activities. In our next issue, Katten attorneys will focus on the preferential treatment rule.

Restricted Activities (Advisers Act Rule 211(h)(2)-1)

  • Regulatory/Compliance Fees: Regulatory/compliance fees may be charged to a private fund when these fees are disclosed in writing to existing investors, within 45 days following the end of the relevant fiscal quarter.
  • Investigation Fees: Investigation fees may be charged to a private fund when there is an investigation of the adviser or its related persons by any governmental or regulatory authority, provided that the adviser seeks consent from each investor and obtains written consent from at least a majority in interest of investors

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