Private equity firms and other private investment firms, including hedge funds and venture capital funds, face having to spend billions of dollars to ensure compliance with a raft of new rules adopted by the SEC last month, according to a report by The Financial Times.
The report claims that the the new private fund regulations have prompted some smaller fund managers to look for their first full-time general counsels and chief compliance officers, while larger firms are also considering adding additional staff. The industry as a whole is reportedly gearing up to invest in additional technology to meet the additional compliance and reporting requirements.
According to the FT, firms are moving ahead with their spending and recruitment plans despite six alternative investment industry groups having filed a law suit aimed at preventing the new rules from coming into effect.
