Ropes & Gray Attorneys Discuss the Government Shutdown’s Impact on the Asset Management Industry
As the shutdown of the U.S. federal government persisted, Ropes & Gray asset management attorney’s provided insights on how this is affecting the asset management industry. In a Jan. 18 article by The Wall Street Journal Pro Private Equity titled “First-Time Funds Face Government Shutdown Pinch,” asset management partner Jason Brown outlined how the shutdown was problematic for first-time private equity fund managers since “The SEC has to declare you effective,” stressing that “It’s not automatic. It puts some firms in an awkward position.”
Insights were also provided by investment management counsel David Tittsworth in Bloomberg Law, Hedge Fund Alert, Pensions & Investments and Financial Advisor. “Until the shutdown is resolved, all non-emergency questions, filings, and proceedings at the SEC are in a state of limbo,” Mr. Tittsworth told Bloomberg Law. “To say the least, this is extremely frustrating for those who have business before the commission.”
As the government reopen, in a Jan. 29 article titled “Funds Bracing for SEC Delays as Government Reopens,” BoardIQ quoted investment management partner Paulita Pike. “Commission chair Jay Clayton’s 2019 rulemaking agenda will probably be delayed,” Ms. Pike stated, noting that SEC staff may bring fewer enforcement cases. “The longer-term issue is the notion that, when the SEC does open up again, it will be back to business, but there will be a backlog and there will likely be delays that go on for some time while the staff addresses that backlog,” she said.