Private Fund Reform Proposal Comments: Requests by Commenters (Part Two of Three)

In early 2022, the SEC released a number of major rule proposals that may impact private fund managers, most notably proposed private fund reforms (Proposal). The original deadline for public comments on the 342‑page Proposal was April 25, 2022. In response to numerous requests for additional time given the scope and nature of the proposed changes and new rules, the SEC extended the deadline to June 13, 2022. As of September 27, 2022, 317 comment letters were submitted in response to the Proposal: 228 submitted by the original deadline and the remaining 89 submitted by – and after – the extended deadline. The Hedge Fund Law Report reviewed a targeted cross-section of the comment letters to identify common concerns, issues and requests. This second article in a three-part series presenting key takeaways from the selected comment letters discusses three requests made by commenters. The first article summarized general concerns raised in the comment letters about the SEC’s authority to make the proposed changes, as well as the scope, intent and impact of the Proposal. The third article will present concerns about specific requirements in the Proposal, particularly the bans on providing preferential treatment to certain investors and on other distinct practices. See our two-part series on the Proposal: “General Observations” (Apr. 7, 2022); and “Rule‑Specific Concerns and Next Steps” (Apr. 14, 2022); as well as “Overview of the Proposal and the Importance of Industry Comments” (March 17, 2022).

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