As a reminder, under amendments to Rule 506 adopted by the Securities and Exchange Commission on July 10, 2013, any private fund conducting an ongoing offering of its securities is required to undertake due diligence to confirm that no “Covered Person” has engaged in a “Disqualifying Event” that would prevent the private fund from relying on Rule 506.
For a summary of the new “Bad Actor” provisions under Rule 506, please refer to our July 23, 2013 Securities Alert.
To assist private fund clients in complying with their due diligence responsibilities under the “Bad Actor” provisions of Rule 506, we have prepared a form of Private Fund Rule 506 Covered Person Questionnaire that should be completed by all “Covered Persons” of each private fund. “Covered Persons” include the following:
A copy of the Questionnaire can be found at this link.
Each private fund should obtain initial completed Questionnaires from its Covered Persons as soon as possible and we are recommending that updated Questionnaires be obtained from Covered Persons on an annual basis thereafter.