Financial regulators in the U.S. and Europe have taken unmistakable steps in recent months to increase their oversight of the activities of investment advisers and funds. While the stated goals of many programs are to monitor risk more effectively across jurisdictions and to avert disasters reminiscent of 2008, many managers feel that the SEC and the European Commission have yet to develop simple and effective methodologies. These developments – along with little legislative movement on proposed reforms like the Financial CHOICE Act or the repeal of the Volcker Rule – have occurred in the U.S. despite the Trump administration’s pro-business rhetoric. In addition, cybersecurity concerns remain a critical driver of regulatory priorities, particularly in the aftermath of the breach of the SEC’s EDGAR system. These issues were the focus of the first panel of the recent third annual Private Funds Forum hosted by Bloomberg BNA and Seward & Kissel. The speakers were Jiří Król
, deputy chief executive officer and global head of government affairs for AIMA; Rosali Pretorius, partner at Simmons & Simmons; Matt Siano, managing director and general counsel for Two Sigma Investments; and Robert Van Grover, partner at Seward & Kissel. This article highlights the key points conveyed by the panelists. For coverage of last year’s forum, see “How Managers Can Mitigate Improper Dissemination of Sensitive Information (Part One of Two)
” (Sep. 22, 2016); and “How Managers Can Prevent Conflicts of Interest and Foster an Environment of Compliance to Reduce Whistleblowing and Avoid Insider Trading (Part Two of Two)
” (Sep. 29, 2016). See also our interview with Van Grover and fellow Seward & Kissel partner Patricia Poglinco on trends in the regulatory space: “Pro-Business Environment of New Administration Continues to Have Challenges and Pitfalls for Private Funds
” (Sep. 14, 2017).