Are private funds for general investors regulated differently from those for professional investors?

Yes. Under the 2021 reform, 'general private funds offered to general investors' are subject to strengthened safeguards, such as delivery of the key product description and asset management reports, external audits, and oversight of management by distributors and trustees.

By contrast, private funds made up solely of professional investors, who are capable of managing risk, remain subject to the previous level of regulation. At the time of the reform, existing funds whose investors were all professional investors were required to state this in their rules and descriptions and report it to the Financial Supervisory Service.