The SEC's Private Fund Adviser Rules Explained — Part 4: The Quarterly Statement Rule

As we have discussed in earlier Client Alerts, on August 23, 2023, the U.S. Securities and Exchange Commission (SEC) adopted new and amended rules under the Investment Advisers Act of 1940, as amended (the Advisers Act), to address certain conflicts of interest and promote investor protection in the private funds industry (the Private Fund Adviser Rules). Our first Client Alert on this topic provided an overview of the Private Fund Adviser Rules. We also prepared a Client Alert addressing new Rule 211(h)(2)-1 (the Restricted Activities Rule), a Client Alert addressing new Rule 211(h)(2)-3 (the Preferential Treatment Rule), and a Client Alert regarding the SEC's statements in the Private Fund Adviser Rules' adopting release (Adopting Release) concerning investment advisers' fiduciary duties with respect to the private funds they manage. This Client Alert addresses another of the Private Fund Adviser Rules, Rule 211(h)(1)-2 (the Quarterly Statement Rule), which requires