Compliance Program Requirements for Private Equity Fund Advisers
The Dodd-Frank Act requires many private fund advisers, including those to private equity funds, to register as investment advisers with the SEC and be subject to its oversight by March 30, 2012.
For private equity firms, the impact of the new regulation and oversight will be significant -- becoming a regulated entity represents a significant transition. One of the more significant new obligations is the “Compliance Program Rule” requiring an investment adviser to adopt and implement formal written compliance policies and procedures, appoint a chief compliance officer, and perform regular testing and oversight.
This FS Regulatory Brief describes considerations for private equity firms in creating and implementing a compliance program, and some action items that private equity firms can consider to help them in adopting a compliance program tailored to the particular compliance risks they face. It complements our earlier A Closer Look pieces on Dodd-Frank, including Advisers to Private Equity Funds (May 2011).
