The Institutional Limited Partners Association (ILPA), an organization of more than 475 institutional investors in private equity, including many CII members, plans to submit a comment letter on an SEC proposal dealing with the fiduciary duties that are owed by investment advisors to their clients, both in the context of retail advisors and private fund advisors.
ILPA's comment letter on "Proposed Commission Interpretation Regarding Standard of Conduct for Investment Advisers
" will address at least two points that the group believes are important to institutional investors. First, it will recommend that the final interpretation provide more clarity and transparency around the conflicts of interest of private fund advisors. Second, the letter will request that the SEC tighten restrictions on private fund advisors' ability to disclaim their fiduciary duties in private equity limited partnership agreements (LPAs) under Delaware law.
The comment period for the proposed interpretation closes on August 7. ILPA encourages CII members to submit comment letters on the proposal. Any questions on ILPA's views or requests for more information should be addressed to Chris Hayes, director of industry affairs, email@example.com
, or 202.871.9367.