The Coronavirus Pandemic: Fund Managers Must Be Sensitive to Electronic Communication and Other Disclosure Issues

As fund managers adapt to the changes to their businesses – including potential activation of their business continuity plans, moves to remote work environments and adjustments to their business strategies – in light of the current coronavirus pandemic, they must also be sensitive to the various concomitant communication and disclosure issues. With increasing numbers of fund managers moving to remote work environments, their employees may be more inclined to communicate via electronic messaging – a practice that poses challenges in terms of compliance with certain provisions of the Investment Advisers Act of 1940 and the rules thereunder. Consequently, managers must ensure their electronic communication policies are properly designed and follow best practices to avoid SEC scrutiny. In addition to regulatory scrutiny, fund managers must be prepared for increased investor demands for information during this period. Finally, managers may be approached by – or consider disclosing information to – the media in light of the pandemic. In that spirit, this article comprises a list of key articles the Hedge Fund Law Report has compiled from its archives to address the above communication and disclosure issues.

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