RT Journal Article
SR Electronic
T1 PE Managers as Registered Investment Advisors
JF The Journal of Private Equity
FD Institutional Investor Journals
SP 8
OP 15
DO 10.3905/jpe.2011.15.1.008
VO 15
IS 1
A1 Gary Gibbons
A1 Heather M. Stone
YR 2011
UL https://pm-research.com/content/15/1/8.abstract
AB The Dodd–Frank Wall Street Reform and Consumer Protection Act requires most private equity managers to register as investment advisors by March 2012. Because this is a new requirement, most PE managers have no practical knowledge of the duties and obligations that they will owe to their clients and to the SEC once they become registered. The situation is further complicated because traditional investment managers represent their clients in a fundamentally different way than the way PE fund managers represent their clients. This article describes the development of the key duties and obligations that traditional investment advisors have to their clients and discusses the new regulatory obligations and duties that registered PE managers will soon owe to their clients and the SEC.TOPICS: Private equity, manager selection, legal/regulatory/public policy, financial crises and financial market history