On August 23, 2023, the US Securities and Exchange Commission (SEC) voted 3-2 to adopt new and amended rules under the Investment Advisers Act of 1940, as amended (Advisers Act) that will impose additional requirements on registered investment advisers and will restrict certain activities for all advisers to private funds, regardless of SEC registration status1 (Final Rules).

The SEC approved the Final Rules despite strong industry objection and dissents from Commissioners Hester Peirce and Mark Uyeda. In contrast, Chairman Gary Gensler indicated that he views the Final Rules as enhancing advisers’ transparency and integrity, as well as promoting greater competition and efficiency.