On February 9, 2022, the SEC proposed new and amended rules under the Investment Advisers Act of 1940 (“Advisers Act”) aimed at promoting transparency, competition, fairness, and efficiency as it relates to certain activities carried out by Advisers to private funds. The proposed rules would, among other things, (1) require registered private fund advisers provide investors with quarterly statements detailing certain information regarding fund fees, expenses, and performance; (2) prohibit private fund advisers (whether registered or unregistered) from providing certain types of preferential treatment to investors that have negative effect on other investors in their funds (e.g., via side letters) and all other preferential treatment unless it is disclosed to current and prospective investors; and (3) require annual audits for private funds. The proposed rules would also prohibit certain activities, including prohibiting private fund advisers (whether registered or unregistered) from seeking reimbursement, indemnification, exculpation, or limitation of liability for certain activity. The public comment period will span for 60 days following publication of the proposing release on the SEC’s website or 30 days following publication of the proposing release in the Federal Register, whichever period is longer.