Private Fund Update - July 21, 2014

It's a busy week as Congress and just about everyone else is counting down the days until August recess. This update includes:

• The building momentum for imposing a user fee on registered investment advisors to fund additional SEC examiners;
• The growing battle over FY 2015 funding for the Securities and Exchange Commission;
• CBO's disturbing report on long-term U.S. debt, which finds that the federal debt will double the total U.S. economy within twenty-five years; and
• This week's Senate Permanent Subcommittee on Investigations hearing on the use of structured financial products to evade U.S. short-term capital gains tax.

Note: The head of the SEC's Office of Compliance Inspections and Examinations recently gave a speech (described below) warning private equity managers about several areas where PE funds are failing to meet their obligations under the Investment Advisers Act. A key problem area is the issue of fees and expenses charged by the general