The conditions laid out in the proposal for a fund board to transfer fund valuation responsibility to an RIA include specific reporting timelines and recordkeeping for advisors; clear specification by boards of RIA responsibilities; and “reasonable segregation of duties” among an RIA’s staff.
At the same time, RIAs that work with funds, especially private funds, should expect that they will continue to be the focus of SEC examinations, lawyers at Pillsbury Winthrop Shaw Pittman said in a recent blog.
The SEC “has made clear that it will continue to target in 2020 Registered Investment Advisers (RIAs) to private funds that have an impact on retail investors, with a focus on adequacy of disclosures to clients (e.g., conflicts of interest, undisclosed fees and expenses). The SEC has expressed its view that private equity’s impact on retail investors is important due, in large part, to the exposure of pension funds and insurers to the industry, the international law firm said.