The Securities & Exchange Commission adopted its final rule on 23 August 2023 regarding revisions to the Investment Advisers Act of 1940 (Advisers Act). The enhanced regulation for private fund advisors aims to increase transparency and competition, thus protecting private fund investors and improving the efficiency of private fund markets. There has also been a key revision in the compliance rule, applicable to all registered advisors, to perform a written annual review regarding their compliance procedures and policies. The main rules for private fund advisors include:

All Private Fund Advisors:

Restrictions in granting preferential treatment that can have a harmful impact on certain investors (unless disclosures provided or investor permission given).
Restrictions to engagement in activities that are not within public interest or can harm investors (unless disclosures provided).

Registered Private Fund Advisors:

A quarterly statement must be provided to private fund investors disclosing information such as performance, fees and the costs to invest in the fund.
Private funds must undertake an audit for their financial statements.
In relation to adviser-led secondary transactions, private fund advisors must acquire a valuation/fairness opinion.

Press Release: https://www.sec.gov/news/press-release/2023-155