The SEC's new marketing rule has come into force just as private funds find themselves in a cash crunch, and some compliance experts are worried it's created a toxic mix for the industry. Greg Larkin, Financial Services and Private Investment Funds partner, has spent much of the last two years warning private fund industry about the marketing rule. He says the exam priorities haven't calmed any of this nerves there. They have made him more nervous about fees and valuations, though. "People who base their fees off the value of the investments—particularly, for commercial real estate firms, but also venture capital firms—they'll have to be very careful they're following their own policies and procedures," Larkin tells RCW. "If you sponsor any of those kinds of funds, the SEC is going to ask, 'How stable are those valuations? How quickly are you making the adjustments or writing them down? How faithfully are you following your disclosures and policies?'"