1. You are here:
  2. Homepage
  3. Resource library search
  4. SBAI Engages with the SEC
Article
26 Jan 2024

SBAI Engages with the SEC

Over the last months, we have continued to engage and meet with the US SEC on a range of proposed rules – raising specific concerns about the unintended consequences of the Safeguarding Advisory Client Assets Rule and the Predictive Analytics Rule.

  • The Safeguarding Advisory Client Assets Rule (click to see the SBAI's letter) is incompatible with a wide range of foreign and domestic markets that involve instruments that cannot be custodied in accordance with the rule; will affect prime brokers’ ability provide margin finance; and will require costly renegotiation of custody and trading agreements.
  • It is unclear if the Predictive Analytics Rule (click to see the SBAI's letter) is intended to apply to institutional investment managers. Its overbroad nature captures virtually any tool as a “covered technology”, with significant and unworkable compliance obligations – despite existing regulation on conflicts of interest / fiduciary duties providing safeguards already.

This follows on from our response to the SEC’s Private Fund Adviser Rule. In 2024, the SBAI will continue to maintain regular dialogue with regulators on a wide range of topics, including financial stability, ESG, markets regulation, as well as other asset management regulations.

Our efforts are supported by the Global Regulatory Committee, which is equally represented by institutional investors and asset managers.

Collaboration is at the heart of the SBAI as we bring our network of stakeholders together to discuss standards, practices, and regulation and we will continue to expand engagement with our stakeholders on regulatory matters in 2024.

SBAI Resources

  • Our Alternative Investment Standards (“Standards”) provide a framework of good practice that complement regulation in key areas including governance, disclosure, valuations, risk management, and shareholder conduct.
  • Our Toolbox of practical guidance complements the Standards and improves industry outcomes through education and standardisation for the alternative investment industry. One area of focus for guidance in 2024 will be publication of a Quarterly Fee & Expense Reporting Template to help practitioners navigate changes being instituted with new regulation in the US.

 

Related topics

Regulation
Return to listing

You may also be interested in

Governance.jpg
26 Jan 2024

GP-Led Secondaries: New SEC Rules Impact on Valuations and Conflicts of Interest

The Securities and Exchange Commission (SEC) has introduced new rules to address conflicts of interest when advisers offer investors the choice between selling or exchanging their interests in a private fund for interests in another vehicle managed by the adviser or related parties. In this piece, we explore the impacts of these new rules for investors and managers and highlight considerations for effective implementation.

Memo
Regulatory engagement.jpg
11 Sep 2023

SBAI's Initial Assessment of the SEC's Private Fund Adviser Rule

Our initial assessment of the SEC's Private Fund Adviser Rule[1] is that while there is less prohibition and more disclosure, it remains overly prescriptive. While some controversial aspects in the original proposal have been modified, the rule will bring significant changes to the regulation of Private Fund Advisers that may still fail to address the root of governance failures.

Article