Insights

Background — The Difficulty for Advisers Since the U.S. Securities and Exchange Commission (“SEC”) adopted Rule 206(4)-1 under the Investment Advisers Act of 1940 (the “Marketing Rule”), investment advisers have struggled with certain requirements relating to presenting “net” performance figures, especially when such figures are difficult to determine. One scenario relates to the presentation of…

Client Alerts | April 3, 2025 | Hedge Funds | Investment Management | Private Equity Funds

The SEC has continued and expanded its focus on violations of Rule 21F-17 of the Securities Exchange Act of 1934 (i.e., the whistleblower protection rule). The SEC began actively enforcing the whistleblower protection rule many years ago, although enforcement actions in late 2023 reflected an intensified focus on whistleblower protections in separation agreements and other…

Client Alerts | June 25, 2024 | Hedge Funds | Investment Management | Private Equity Funds

Firms should review their employment related agreements to determine if any changes are necessary. In September 2023, the SEC issued orders against each of D.E. Shaw & Co., L.P. (“D.E. Shaw”), CBRE, Inc. (“CBRE”) and Monolith Resources LLC (“Monolith”) in connection with provisions in their separation agreements and other employment-related documents that violated Rule 21F-17…

Client Alerts | October 13, 2023 | Executive Compensation | Hedge Funds | Investment Management | Private Equity Funds

The Securities and Exchange Commission (“SEC”) adopted sweeping amendments to the rules that govern advertising by investment advisers and payments to solicitors under the Investment Advisers Act of 1940, as amended (“Advisers Act”). These amendments combined the prior rules governing advertising and paid solicitation into a single revised Rule 206(4)-1 (the “Marketing Rule”).1 All investment advisers registered,…

Client Alerts | October 12, 2022 | Hedge Funds | Investment Management | Private Equity Funds

Getting out ahead of mandatory standards could bring organizational improvements and boost assets under management Within an asset management firm’s website may be a page that signals its commitment to diversity, equity, and inclusion (“DEI”) in ownership, leadership, employment and even investing practices. The commitments and aspirations are both admirable and responsive to the increased…

Client Alerts | September 29, 2022 | Hedge Funds | Investment Management | Private Equity Funds

On June 17, 2021, the U.S. Securities and Exchange Commission (the “SEC”) issued an order (the “Order”1) increasing the dollar amount tests in order to qualify as a “qualified client” in Rule 205-3 (the “Rule”) under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). As described below, these changes will be effective…

Client Alerts | August 2, 2021 | Investment Management | Hedge Funds | Private Equity Funds