Chapter 13

Professional Standards

Harry Cendrowski

Louis W. Petro

Introduction

Though private equity (PE) appears to float under the regulation radar of the Securities and Exchange Commission (SEC), it is not entirely unregulated. As detailed in Chapter 1, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank) significantly increased the regulation of PE firms, particularly those that manage one or more private funds with greater than $150 million in assets under management. However, PE funds are subject to rules and regulations that have resulted from decades of legislation. This chapter introduces securities legislation pertinent to PE funds as well as relevant policing bodies.

Federal Trade Commission

The Federal Trade Commission (FTC) is charged with investigations regarding federal antitrust legislation and investigations involving federal consumer protection legislation.

Federal Antitrust Legislation

The FTC enforces the following U.S. antitrust statutes:

img Sherman Antitrust Act (1890)

img Clayton Antitrust Act (1914)

img Federal Trade Commission Act (1914)

Robinson-Patman Act (1936)

Celler-Kefauver Antimerger Act (1950)

Hart-Scott-Rodino Antitrust ...

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