Financial Times and NLJ Among Media That Quoted Brian Daly on Challenge to SEC’s Private Funds Rule

Following a suit filed by the Managed Funds Association and five other funds industry groups against the Securities and Exchange Commission (SEC) alleging that the SEC, through its new private fund advisers rule, has overreached its statutory authority and is interfering with contracts, Akin investment management & private equity partner Brian Daly was quoted by the Financial Times and the National Law Journal.

Brian told the Financial Times, "The petition is saying that the fair reading of the relevant sections of Dodd-Frank is that Congress was envisioning additional protections for purchasers of securities, primarily retail purchasers. It’s a grant of rulemaking authority to protect purchasers from unsavory sales practices. The petition says that’s being stretched beyond all recognition into something regulating a whole different part of the market — regulating the economics of an advisory relationship, nothing to do with the sale of securities."

For its article “Managed Funds Association, Other Groups Sue SEC Over Private Fund Adviser Rule,” The National Law Journal quoted Brian, who said that the private fund adviser rule imposes what he called a “mutual fund superstructure” on the private fund industry. He added, “It goes without saying that private equity, hedge, and other private fund managers will be paying close attention to this matter, but it is worth noting that this [Managed Funds Association] petition, in and of itself, does not have any tolling effect on the rule itself. Every industry participant has to make a decision as to when they pull the trigger on implementation for the new rule because that requires changing the system, changing processes, disclosures, hiring lawyers.”

Additionally, Brian was quoted in Private Funds CFO's and Regulatory Compliance Watch's “Don’t wait for courts on PF rules, experts warn,” noting, “I have been suggesting that managers do initial planning but hold off on large-scale commitments of resources or money until early October. That will give them a chance to understand the litigation landscape, and to let the industry start ot coalesce around common implementation questions.”

Private Equity International cited Brian's thinking for its article "Beware PE's compliance countdown," in which he is noted as recommending that fund managers plan for the reforms and wait on large-scale commitments of resources or capital until early October. By doing so, Brian said, they will have the chance to understand the litigation landscape as the industry comes to grips with what the reforms will mean.

Brian has been quoted extensively in financial media outlets on the SEC’s new rule. Learn more here.