Increased regulatory scrutiny in the wake of Dodd-Frank is creating challenges for financial professionals at midsize private equity firms.
That is among the key findings of a new study by ACG’s SEC Task Force. The group polled compliance, finance and operations officials at private equity firms about regulatory issues ranging from uncertain financial disclosure requirements to SEC examinations and their firms’ use of general solicitation.
Responses from more than 200 financial professionals confirm a strong need for continued dialogue with the Securities and Exchange Commission to ensure that the agency’s compliance requirements are fair, understandable and not overly burdensome for firms.
“No one is feeling the pressure from the current regulatory environment more than CFOs,” said Blinn Cirella, CFO of Saw Mill Capital, who spoke on an ACG-hosted webinar on Oct. 2 to disclose the study’s findings.
“Not only are we worried about meeting a multitude of deadlines, keeping our LPs happy and keeping our auditors happy,” she said, “but we also have to understand increasingly complicated deal structures and keep up with confusing compliance regulations.”