Firm News
SRZ Submits Comment Letters on Proposed Rules for Private Fund Advisers and Short Position Reporting
May 4, 2022
SRZ recently submitted two comment letters to the U.S Securities and Exchange Commission on the agency's proposed rules regarding advisers to private funds, as well as on a new rule and form for short position and short activity reporting by institutional investment managers.
Proposed Rules for Private Fund Advisers
In the first letter, SRZ submitted comments to the SEC on the agency’s proposed rules regarding advisers to private funds in a letter that identifies and addresses significant concerns with the proposals and recommends that they be withdrawn or modified to avoid stifling private fund opportunities.
Proposed Rules for Short Position Reporting
In a second letter, SRZ commented on the agency’s proposed new rule and form for short position and short activity reporting by institutional investment managers. SRZ’s letter comments on the proposal to collect, aggregate and publish on a monthly basis gross short position data and recommends against the alternative approach of anonymized manager-level reporting. SRZ also makes specific suggestions to improve the accuracy of the data collected and to better assess data confidentiality.
SRZ is carefully following the development of new rules affecting private investment fund managers and invites continued dialogue on these matters.
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Alerts
On March 1, 2024, New York Governor Kathy Hochul signed into law an amended version of the New York LLC Transparency Act (“NYLTA”),[1] requiring certain limited liability companies (“LLCs”) formed or authorized to do business in New York (each, a “NY Reporting Company”) to file a beneficial ownership information (“BOI”) report with the NY Department of State (“NY DOS”). Each NY Reporting Company will be required to disclose on its BOI report identifying information pertaining to each individual who directly or indirectly exercises substantial control or owns or controls 25 percent or more of the ownership interests of a NY Reporting Company (each, a “Beneficial Owner”) and the individuals involved in the NY Reporting Company’s formation or registration to do business in New York (each, an “Applicant”). Information reported to NY DOS will be maintained in a private database not accessible to the public. The NYLTA goes into effect on Jan. 1, 2026 and requires the NY DOS to promulgate regulations implementing the legislation.
Alerts
The US Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”) have overhauled Form PF and private fund managers have until March 12, 2025, to begin reporting on the new Form. The changes to the reporting requirements mandated by the amendments to the Form (“Form PF Amendments”) will require substantial preparation by many managers.[1]
Alerts
On March 1, 2024, New York Governor Kathy Hochul signed into law an amended version of the New York LLC Transparency Act (“NYLTA”),[1] requiring certain limited liability companies (“LLCs”) formed or authorized to do business in New York (each, a “NY Reporting Company”) to file a beneficial ownership information (“BOI”) report with the NY Department of State (“NY DOS”). Each NY Reporting Company will be required to disclose on its BOI report identifying information pertaining to each individual who directly or indirectly exercises substantial control or owns or controls 25 percent or more of the ownership interests of a NY Reporting Company (each, a “Beneficial Owner”) and the individuals involved in the NY Reporting Company’s formation or registration to do business in New York (each, an “Applicant”). Information reported to NY DOS will be maintained in a private database not accessible to the public. The NYLTA goes into effect on Jan. 1, 2026 and requires the NY DOS to promulgate regulations implementing the legislation.
Alerts
The US Securities and Exchange Commission (“SEC”) and the Commodity Futures Trading Commission (“CFTC”) have overhauled Form PF and private fund managers have until March 12, 2025, to begin reporting on the new Form. The changes to the reporting requirements mandated by the amendments to the Form (“Form PF Amendments”) will require substantial preparation by many managers.[1]