The Managed Funds Association ("MFA") summarized its regulatory priorities and advocated an approach that "protects investors, enhances regulatory coordination, promotes market transparency and increases market fairness and efficiency."
In a detailed letter to Chair Jay Clayton, the MFA urged the SEC to, among other things:
- implement additional data security measures designed to protect confidential information of registrants;
- advocate against efforts by FSOC to "impose bank-like regulations on non-bank activities";
- adjust proposed rules imposing restrictions on incentive-based compensation for employees of investment advisers;
- withdraw the proposed business continuity rule for advisers;
- rationalize SEC and CFTC regulation by (i) consolidating private fund systemic risk reporting into a single form and (ii) providing that private fund managers should be required to register either with the SEC or the CFTC, but not both agencies;
- make certain that equity market structure reforms increase disclosure and transparency of investors;
- withdraw proposed amendments to Regulation D, Form D and Rule 156 in order to incentivize private fund managers to conduct offerings under Rule 506(c) of Regulation D;
- amend rules relating to the posting of margin;
- withdraw the proposal imposing notional-based leverage limits on registered funds;
- address the increasing regulatory burden imposed by the Federal Trade Commission's interpretation of the Hart-Scott-Rodino Antitrust Improvements Act;
- modernize the Advisers Act advertising rules;
- adopt the proposed rule permitting greater investments by private and SEC-registered funds in exchange-traded funds;
- limit the application of the pay-to-play rule so that employees of advisers are not precluded from making political contributions;
- maintain objective standards in the definition of "accredited investor" based on income and net worth; and
- expand the definition of "knowledgeable employee," which would allow more employees of advisers to make investments in the funds for which they provide services.
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