Waiting Game: Still No SEC Rules on Placement Agents

It’s been nearly a week since SEC chair Mary Shapiro issued her statement about a federal ban on PE/VC firms using placement agents to raise fund capital from public pensions. What remains elusive, however, is the actual proposal.

As such, the private equity market still doesn’t have answers to such questions as: (a) Would public universities be included? (b) Would firms be grandfathered in if they began fundraising before the rules were put in place? (c) Would all public pensions be required to standardize reporting of intermediaries? (d) Would there be a capital floor, or is it “one size fits all?” (e) Is the SEC out of its frickin’ mind?

An agency spokesman yesterday told me that there is no specific timetable for when the rules will be released, but told me to keep my eyes on this section of the SEC website. In other words, the proposal could be there within the next hour, or within the next month. Probably closer to the former, given that it seems to have fairly broad support within the SEC…