Regulatory Update: 2016 at a Glance
PEGCC engagement on regulatory matters has made a significant positive difference for our industry. Continuing a multi-year trend, 2016 brings with it a number of regulatory questions, uncertainties,…
PEGCC engagement on regulatory matters has made a significant positive difference for our industry. Continuing a multi-year trend, 2016 brings with it a number of regulatory questions, uncertainties, and potential actions by agencies both domestic and abroad. Among other issues, the PEGCC will be engaged on the following matters:
- Certain unresolved Dodd-Frank Act regulations, including new proposed incentive compensation rules.
- Proposed CFTC aggregation relief needs to be finalized.
- JOBS Act general solicitation rules have been final for more than a year, but unresolved proposed rules could still increase burdens on Regulation D offerings with or without general solicitation.
- The Financial Crimes Enforcement Network (FinCEN) has proposed that all registered investment advisers be required to establish anti-money laundering (AML) programs and report suspicious transactions.
- The SEC’s proposed amendments to Form ADV would in part increase the amount and types of information that private equity investment advisers would have to provide and/or retain.
- Foreign regulatory regimes remain in flux (e.g., the Alternative Investment Fund Managers Directive Passport and national private placement regimes in Europe).
- The Organisation for Economic Cooperation and Development (OECD) will undertake further work to determine how its Base Erosion and Profit Shifting Action Plan on Tax Treaties should impact “Non Collective Investment Vehicles,” including private equity.
All of these new regulatory developments supplement and do not supplant the continued activities of the SEC’s Office of Compliance, Inspections and Examinations and the Division of Enforcement on a variety of important topics including fees, expenses, operating partners, etc.
These outstanding regulatory issues highlight the importance of the PEGCC remaining engaged with policy makers in Washington and abroad. On all private equity issues, the PEGCC will continue our engagement to: (1) support positive regulatory (and legislative) proposals that would make it easier and less costly for PE firms and funds to conduct business and (2) prevent any shortsighted attempts by policy makers to create bad policy that will increase regulatory burdens on our industry.
