The “VACATED” Heard ‘Round the World: What’s Next after the SEC Private Fund Adviser Rules?

What’s next after PFAR? 

In its highly-awaited June 5th opinion, the Fifth Circuit Court of Appeals vacated all of the SEC’s Private Fund Adviser rules (“PFAR”), agreeing with industry trade associations that the SEC lacked the necessary statutory authority to adopt PFAR. In our latest Client Alert, we examine the opinion, aspects of the rules that may survive the outcome, and what the Fifth Circuit’s decision may mean for other pending and final SEC rules. In our view, the PFAR adopting release continues to offer important insights into how the SEC staff views certain adviser activities and which areas are likely to draw scrutiny in the context of examinations and enforcement investigations.