Hedge funds must now document their compliance reviews in writing

The US financial regulator now requires private fund advisers to keep written records of their annual compliance reviews. This means regulators can now check if these funds are actually following the rules, not just saying they are.

For years, private funds could claim they were compliant without much proof. This rule change means they now have to show their work. It makes it easier for regulators to spot problems and hold funds accountable, which could lead to more enforcement actions.