Abstract
Title IV requires private fund adviser registration in combination with enhanced disclosure of sensitive proprietary information.7 Private fund advisers with more than $150 AUM are required to register as investment advisers and have to disclose information about their trades and portfolios to the SEC.8 Registered investment advisers are required to maintain records and any other information that may be necessary and appropriate to avoid systemic risk.9 Although these reports are confidential and not publicly available, the more controversial disclosure requirements include the reporting of performance and changes in performance, counterparties and credit exposure, strategies and products used by the investment adviser and its funds, risk metrics, financing information, percentage of assets traded using algorithms, and the percentage of equity and debt.10 Investment advisers must provide reports with respect to certain information related to systemic risk,11 such as valuation policies, side letters, trading practices, trading and investment positions, the amount of AUM, the use of leverage, including offbalance sheet leverage, and other information deemed necessary.12 The true impact of these regulations on the private fund industry is still unclear.