Schulte Roth & Zabel partner Chris Avellaneda shared his thoughts on the recent SEC and CFTC “Reg Flex” agendas with Hedge Fund Law Report  for the article, “What’s Next for the SEC and CFTC? A Look at the Latest Reg Flex Agendas.”

Chris stated that the SEC items most immediately relevant to private fund advisers are the planned final rules for outsourcing; disclosure on environmental, social and governance (ESG) practices; and cybersecurity risk management and reporting.

Regarding the proposed amendments to Regulation D and Form D, Chris noted that advisers should be on the alert for these proposed updates since many private fund managers rely on the exemption from registration in Section 3(c)(7) of the Investment Company Act of 1940. Such advisers are less affected by changes to the accredited investor definition. However, “changes to disclosure requirements on Form D could still be impactful, and many firms still use the [Section 3(c)(1) exemption] for certain funds,” he said.

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