What the SEC's New Marketing Rules Mean for Private Funds
Genna Garver, a partner with Troutman Pepper, was quoted in a Private Funds CFO article titled, " How to Allocate Pandemic-Related Expenses."
Among other things, that part of the rule may mean that compliance teams will have to go through their private placement memoranda to make sure the language they're using is kosher, says Genna Garver, partner at Troutman Pepper in New York.
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Garver is one of several private funds advocates who has long been concerned about the widening compliance burden. She says she's especially worried because the Commission is still weighing proposals that would make compliance officers personally liable for shenanigans. The new marketing rule feels like it could be especially fraught because so much of it is aimed at traditional fund business practices.
"You've really got to train your staff up on testimonials and endorsements, and how they work," Garver says.
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Now comes the new, 430-page marketing rule, with a suite of guidelines and the antifraud enforcement provisions behind it. "I really am worried about compliance burden," says Genna Garver, a partner at Troutman Pepper who has helped the National Society for Compliance Professionals lobby the SEC on the issue.
"We really should be thinking about this," she says.