If finalized, a new proposal would implement sweeping mandates on private fund advisors. The proposal would require registered private fund advisors to provide investors with detailed, standardized, quarterly information on fees, expenses, and performance. This also would include data on portfolio investment compensation. Under the proposal, private fund advisors would need to obtain an annual financial statement audit by a Public Company Accounting Oversight Board-registered auditor and to document in writing their annual compliance reviews.
The proposal also would require registered private fund advisors to provide investors with an independent fairness opinion for any advisor-led secondary transaction. Additionally, the proposal would prohibit all private fund advisers, even those not registered with the Commission, from directly or indirectly engaging in certain sales practices, conflicts of interest, and compensation schemes. Private fund advisors also would be prohibited from charging certain types of fees and expenses to a private fund or portfolio investment, allocating certain fees and expenses in a non-pro rata fashion, and providing certain types of preferential treatment.
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
