Understanding the New Anti-Fraud Rule for Fund Advisers

By: Jessica Forbes, Terrance J. O'Malley

The SEC recently adopted new Rule 206(4)-8 under the Advisers Act, an anti-fraud rule that addresses improper conduct by advisers to pooled investment vehicles.  This Client Alert highlights and summarizes some of the more significant aspects of the new rule, as well as our general view that the rule (1) does not create any additional regulatory exposure or liability for advisers and (2) should not require advisers to take additional steps to ensure compliance with the rule.

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