Norm Champ, the Director of the Division of Investment Management, recently discussed the future priorities of the Division of Investment Management of the SEC. In his remarks, Director Champ noted that he has asked the staff to review the Division’s policy initiatives in order to prioritize them based on four factors: (1) identification of the risk to be mitigated, or the problem to be solved; (2) urgency associated with such initiative; (3) potential impact of such initiative on investors, registered advisers, the applicable markets and the SEC’s operational efficiency; and (4) resources required for such initiative.

Director Champ also discussed a specific regulatory initiative related to private fund advisers. The first initiative relates to the application of the Investment Advisers Act of 1940 (the “Advisers Act”) to private fund advisers going forward. Because advisers to certain private funds are now required to register under the Advisers Act, the SEC now faces a different registrant base than it has had in previous years. Approximately forty percent (40%) of advisers currently registered with the SEC serve private funds.
Director Champ further noted that the SEC has received a number of questions and comments from newly registered private fund advisers regarding the application of the Advisers Act to them, including the applicability of certain advertising and books and records provisions in the Advisers Act. Director Champ stated that as a result of these inquiries and comments, the SEC would review the regulatory framework and its relationship to private fund advisers.

The full text of Director Champ’s speech is available here.