Dechert Files a Comment Letter in Response to the SEC’s Concept Release on Harmonization of Securities Offering Exemptions
On September 24, 2019, Dechert LLP filed a comment letter in response to the SEC’s concept release regarding harmonization of securities offering exemptions. The SEC requested comment on ways to enhance the framework for exemptions from registration under the Securities Act of 1933 (the “Securities Act”), in order to promote capital formation while protecting investors. Capitalizing on Dechert’s extensive practical experience advising participants within the financial services industry, the comment letter highlighted, among other items, the complexity of dealing with various standards for different types of investors investing in private funds, the benefits that could be realized by permitting retail investors to invest in closed-end funds of private equity and private credit funds, and certain reforms to the regulatory framework for closed-end interval funds.
Additional topics that the comment letter covered included the potential expansion of the definition of “accredited investor” under Rule 501 of Regulation D under the Securities Act to include similar thresholds governing advisers and private funds to simplify exempt offerings, the question of whether to shorten the six-month integration safe harbor of Rule 502(a) promulgated under Regulation D of the Securities Act, and generally permitting advisers to registered investment companies to charge capital gains performance fees, subject to certain limitations.
On November 12, 2019, partner Richard Horowitz testified with John Finley, Senior Managing Director and Chief Legal Officer of Blackstone, at the Meeting of the Small Business Capital Formation Advisory Committee on the Harmonization Concept Release.