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In the wake of the reversal of the SEC’s Private Fund Adviser Rules, the weight of transparency and fairness in alternative funds now lies on managers and investors.

The SBAI supports the latest efforts by the regulators to understand and address any potential risks emanating from non-bank financial institutions (NBFI) and welcomes findings which indicate resilience in the financial system despite prior concerns.

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 SBAI supports efforts to enhance data collection regarding the banking sectors’ exposure to non-bank financial institutions (NBFI).

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 rules will bring significant changes to the regulation of Private Fund Advisers that may still fail to address the root of governance failures.

Systemic risk concerns have been amplified lately by significant market events. SBAI's Standards and Tools can help mitigate some of these concerns.

In August 2022, the UK Financial Conduct Authority (FCA) issued its Dear CEO letter setting out its Alternatives Supervisory Strategy. This letter touched on several issues that are at the core of our mission here at the SBAI, including risk management, culture and responsible investment. In this article, we discuss some of the points raised by the FCA and where we can be helpful to firms reviewing their processes and controls following on from this letter.