Those looking to launch hedge, private equity, venture, or real estate funds in the near future should take notice that the SEC intends to consider, in April 2022, changes to the definition of the “accredited investor” definition found in Regulation D under the Securities Act of 1933, which allows many private fund sponsors to offer their securities without having to register them with the SEC when they limit sales of securities to accredited investors.

While the SEC has not indicated whether it intends to restrict the definition to reduce the pool of investors that qualify as “accredited investors,” it should be noted that several rule proposals recently published by the SEC are designed to enhance investor protection and promote increased disclosure when it comes to investments in private funds.

Changing the accredited investor definition will invariably impact private fund capital raising, and therefore existing and prospective fund sponsors should take notice.

Read more here.

To facilitate compliance with amendments to Rule 206(4)-1 (Marketing Rule) under the Investment Advisers Act of 1940, we developed a Compliance Checklist.  The date for compliance  is November 4, 2022 – by which time registered investment advisers must adopt and implement new policies and procedures, and build the operational and supervisory systems necessary for compliance.

• The Marketing Rule modernizes the regulatory regime governing investment adviser marketing practices and revises standards that investment advisers have been operating under for decades.
• Compliance with the Marketing Rule will require significant changes to investment advisers’ marketing practices, including use of testimonials, endorsements, or third party ratings and investment advisers’ use of performance information.
• The Compliance Checklist is intended to serve as a helpful guide for legal and compliance personnel responsible for developing compliant policies, procedures, and systems that account for these sweeping changes.

You can access it here.

Investment Advisors

• Form ADV Annual Updating Amendment
• IARD Fees
• State Filings

Hedge/Private Fund Advisors

• Reaffirm CPO and CTA Exemptions
• Initial Form PF
• Form PF for Large Hedge Fund Advisers
• Blue Sky Filings (Form D)
• Exempt Reporting Advisers Form ADV Filing
• Annual Reports for 4.7 Exempt CPOs

Broker-Dealers

• Annual Reports for the Fiscal Year-End December 31st
• Supplemental Inventory Schedule (“SIS”)
• SIPC-6 Assessment
• SIPC-7 Assessment
• SIPC-3 Certification of Exclusion from Membership
• Rule 17a-5 Monthly and Fifth FOCUS Part II/IIA Filings
• Supplemental Inventory Schedule (“SIS”)
• SIPC-6 Assessment
• SIPC-3 Certification of Exclusion from Membership
• SIPC-7 Assessment

Registered Commodity Pool Operators

• Form CPO-PQR (All Schedules)
• CFTC Form CPO-PQR 
• CFTC Form CPO-PQR 
• CPO Members must distribute an Annual Report

Mutual Funds

• Form N-PORT
• Form N-MFP
• Form N-CEN

Read more here.