Below is a summary of recent investment management developments that affect registered investment companies, private equity funds, hedge funds, investment advisers, and others in the investment management industry.

FinCEN Finalizes Beneficial Ownership Identification Rules -

As part of the U.S. Treasury Department’s ongoing efforts to prevent bad actors from using U.S. companies to conceal money laundering, tax evasion, and other illicit financial activities, the Financial Crimes Enforcement Network (FinCEN) has issued a final rule to strengthen the customer due diligence (CDD) efforts of “covered financial institutions.” 1 The CDD rule, issued May 11, 2016, requires covered financial institutions, including banks, federally insured credit unions, broker-dealers, mutual funds, futures commission merchants, and introducing brokers in commodities, to identify the natural persons that own and control legal entity customers—the entities’ “beneficial owners.”