PLANADVISER - July/August 2022 - 9

13F include requiring filers to provide
additional identifying information
and making technical amendments
to improve the quality of the data
reported on the form.
The rule document says e-filing
capabilities helped address logistical
and operational
issues raised during
the COVID-19 pandemic, and that
expanding electronic submissions will
allow the SEC and filers to more effectively
handle disruptive events that
may occur in the future.
Except for the amendments to
Form 13F,
the new rules and form
amendments will be effective 60 days
after they are published in the Federal
Register. The amendments to Form
13F will be effective January 3, 2023,
and the SEC is providing a six-month
transition period to give filers time to
prepare for the changes.
Private Fund Rule
The original comment period for the
Securities and Exchange Commission's
proposed private fund industry regulation
technically ended in mid-June. But
the agency's website is still accepting
public comments, meaning it is apparently
not too late for stakeholders to
make their voice heard.
In January, the SEC proposed
substantial amendments to Form PF,
the confidential
reporting form for
certain SEC-registered investment
advisers to private funds-i.e., funds
outside the definition of " investment
company " by virtue of the exceptions
set forth in Sections 3(c)(1) and 3(c)(7) of
the Investment Company Act of 1940.
The SEC's leadership says the proposed
amendments are designed to enhance
the Financial Stability Oversight Council's
ability to assess systemic risk,
as well as to bolster the SEC's overall
regulatory oversight of private fund
advisers, and its investor protection
efforts, in light of the private fund
industry's growth.
The proposed amendments would
provide the two organizations with
more timely information to analyze
and assess risks to investors and the
markets more broadly. The proposal
would also,
for large private equity
advisers, lower the reporting threshold
from $2 billion to $1.5 billion in private
equity fund assets under management.
The SEC's leadership has argued
that taking this action would result in
reporting on Form PF that continues
to provide robust data on a sizable
portion of the private equity industry.
Finally, the proposal would require
more information regarding large
private equity funds and large liquidity
funds to enhance the information used
for risk assessment and the SEC's regulatory
programs.
Attorneys say the SEC's messaging
shows that the regulator feels it cannot
rely on the private fund industry itself
to make adequate disclosures under
the current framework. Parts of the
proposal seem to demand that certain
private fund advisers engage a third
party to provide fairness assessments
regarding how the fund is constructed
and distributed, while other parts
would ask that new disclosures be
made to all investors in a fund as to
any side letters or communications
certain other investors are receiving.
Should the proposal follow the
typical course for such regulations,
a final version of it likely will emerge
sometime this year and have a multiyear
implementation process.
While most of the proposal would
affect advisers who service private
funds, the commission's proposal
requiring SEC-registered advisers to
document the annual review of their
compliance policies and procedures in
writing would apply to any registered
investment adviser.
Mergers Involving DB Plans
Following the release of the Pension
Benefit Guaranty Corporation's final
rule on multiemployer plan special
financial assistance, the IRS has
weighed in on the rule's effect on
certain plan mergers.
In Revenue Ruling 2022-13, the IRS
answers the question: " If a multiemployer
defined benefit pension plan
that has received special financial
assistance from the PBGC is merged
into a multiemployer defined benefit
pension plan that has not received
SFA, and the [latter] is designated as
the ongoing plan after the merger, is
the ongoing plan deemed to be in critical
status under section 432(b)(7) of
the Internal Revenue Code solely as a
result of the merger? "
The question is important because
DB plans in critical status must enter
into a rehabilitation plan and are
subject to certain benefit restrictions.
The IRS says the plan designated as the
ongoing plan after merging with a plan
that received SFA is not deemed to be
in critical status.
The agency notes, however, that,
following the merger, the ongoing plan
must comply with the restrictions and
conditions that applied to the plan that
received SFA. For example, the ongoing
plan will maintain a separate account
for the SFA funds received and invest
the assets of that separate account in
permissible investments in accordance
with the PBGC's final rule.
Equitable Financial Settles
SEC Fraud Charges
The Securities and Exchange Commission
announced on July 19 that it has
secured a settlement from Equitable
Financial Life Insurance Co. related to
fraud charges the agency had brought
against the firm earlier this year.
The basis of the charges, according
to an SEC statement, is that Equitable
allegedly provided account statements
to about 1.4 million variable annuity
investors that included " materially
misleading statements and omissions "
concerning investor fees. Equitable
has agreed to compensate the harmed
investors to settle the charges. Most of
the clients affected are public school
teachers and staff members.
As described in the SEC's order,
since at least 2016, Equitable was
giving investors the impression that
their quarterly account statements
listed all fees paid during the period.
The SEC found that the statements
listed only certain types of fees that
investors infrequently incurred and
that the statements often had $0.00
listed in fees. Specifically, the SEC's
order found that Equitable violated the
antifraud provisions of the Securities
Act of 1933. In agreeing to the settlement,
the firm neither admitted nor
denied the SEC's findings. -PA
planadviser.com July-August 2022 | 9
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PLANADVISER - July/August 2022

Table of Contents for the Digital Edition of PLANADVISER - July/August 2022

Balancing Act
Greater Access
Previewing Plan Features
A Different Way to Save
Next-Level Options
New Territory for Income?
Compliance for Wealth Managers
If Caught Off Guard by A Failure
Larry E. Crocker
PLANADVISER - July/August 2022 - C1
PLANADVISER - July/August 2022 - FC1
PLANADVISER - July/August 2022 - FC2
PLANADVISER - July/August 2022 - C2
PLANADVISER - July/August 2022 - 1
PLANADVISER - July/August 2022 - 2
PLANADVISER - July/August 2022 - 3
PLANADVISER - July/August 2022 - 4
PLANADVISER - July/August 2022 - 5
PLANADVISER - July/August 2022 - 6
PLANADVISER - July/August 2022 - 7
PLANADVISER - July/August 2022 - 8
PLANADVISER - July/August 2022 - 9
PLANADVISER - July/August 2022 - 10
PLANADVISER - July/August 2022 - 11
PLANADVISER - July/August 2022 - 12
PLANADVISER - July/August 2022 - 13
PLANADVISER - July/August 2022 - 14
PLANADVISER - July/August 2022 - 15
PLANADVISER - July/August 2022 - Balancing Act
PLANADVISER - July/August 2022 - 17
PLANADVISER - July/August 2022 - 18
PLANADVISER - July/August 2022 - 19
PLANADVISER - July/August 2022 - Greater Access
PLANADVISER - July/August 2022 - 21
PLANADVISER - July/August 2022 - 22
PLANADVISER - July/August 2022 - 23
PLANADVISER - July/August 2022 - Previewing Plan Features
PLANADVISER - July/August 2022 - 25
PLANADVISER - July/August 2022 - 26
PLANADVISER - July/August 2022 - 27
PLANADVISER - July/August 2022 - A Different Way to Save
PLANADVISER - July/August 2022 - 29
PLANADVISER - July/August 2022 - 30
PLANADVISER - July/August 2022 - 31
PLANADVISER - July/August 2022 - Next-Level Options
PLANADVISER - July/August 2022 - 33
PLANADVISER - July/August 2022 - 34
PLANADVISER - July/August 2022 - 35
PLANADVISER - July/August 2022 - New Territory for Income?
PLANADVISER - July/August 2022 - 37
PLANADVISER - July/August 2022 - Compliance for Wealth Managers
PLANADVISER - July/August 2022 - If Caught Off Guard by A Failure
PLANADVISER - July/August 2022 - Larry E. Crocker
PLANADVISER - July/August 2022 - Cover3
PLANADVISER - July/August 2022 - Cover4
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https://www.planadviserdigital.com/planadviser/september_october_2017
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