If you were wondering yesterday, “Where is my weekly issue of Cabinet News and Views?”, here is the answer: The SEC’s Private Fund Adviser Rule is so significant – must reading, we think – that we decided to hold our issue just one day in order to give our team, led by senior counsel Maurine Bartlett, the opportunity to read, analyze, discuss and interpret the implications of the rule in our lead article this week. Simply put, the adoption of the rules by the SEC adds additional requirements to advisors of private funds. However, as Maurine et al note, the final rule does provide welcome relief to managers and advisors to CLOs and other “securitized asset fund[s].”

Also, in the late-breaking news category, I would recommend to you today’s Fund Finance Friday, which should be out shortly, where our Finance colleagues cover news out the second circuit in the Kirschner v. JP Morgan Chase case where the court held that syndicated loans are not securities.

Any thoughts on the new SEC rule or our other articles this week? You can reach out to me here.

Daniel Meade 
Partner and Editor, Cabinet News and Views

In February 2022, the Securities and Exchange Commission proposed sweeping new regulatory requirements under the Investment Advisers Act of 1940, as amended for investment advisers that provide advisory services to “private funds.” At a meeting this past Wednesday, the Commission adopted those rules, with certain key changes, by a three to two vote. Those new regulatory requirements, as adopted, narrow the regulatory differences between SEC-registered investment companies and private funds and significantly increase the Advisers Act regulatory burdens associated with managing a “private fund.” The applicability of the new rules is not linked to the size of an investment adviser’s assets under management. 

You can read our Clients & Friends Memo here.

By Daniel Meade

Partner | Financial Regulation

The Federal Deposit Insurance Corporation gave notice that its Board of Directors will meet next week with a busy agenda. 

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By Mercedes Kelley Tunstall

Partner | Financial Regulation

Last week, Rohit Chopra, the director of the Consumer Financial Protection Bureau, shared remarks at a White House roundtable convened to address “harmful data broker practices.” Referring to data brokers as being part of the “surveillance industry,” Chopra announced forthcoming rulemakings that are intended to “ensure that modern-day digital data brokers are not misusing or abusing our sensitive data” by using artificial intelligence and “other predictive decision-making” technologies.

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