In 'Significant' Move, Blackstone Seeks Relief from In-Person Sub-Adviser Approvals
Blackstone Alternative Investment Funds and their adviser are seeking an exemption for their fund board from having to hold in-person meetings to approve sub-advisory agreements. Should the Securities and Exchange Commission grant Blackstone's request, industry lawyers say the move would be significant and could indicate that the regulator may move closer to rulemaking that would address, in a more general sense, when in-person approvals are necessary and required.
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'Monumental Distinction'
Thomas Westle, a partner at Blank Rome LLP in New York, said an exemptive order from the SEC would be significant. "This would mean that there would be a monumental distinction between approving an advisory agreement and a sub-advisory agreement notwithstanding that both are registered entities regulated by and subject to the requirements of Section 15(c) of the Investment Company Act of 1940," he told Fund Board Views. "This request, if granted, would provide advisers with greater flexibility and make those that employ sub-advisers more nimble in their ability to hire new sub-advisers and to replace current sub-advisers quicker."
"In 'Significant' Move, Blackstone Seeks Relief from In-Person Sub-Adviser Approvals," by Hillary Jackson was published in Fund Board Views on April 17, 2019.