On April 25th the LSTA submitted this comment letter in response to the SEC’s Notice of Proposed Rulemaking for Private Funds (the “Proposed Rule”). The LSTA’s comment letter is divided into several sections. In the first part, we argue that CLOs should be exempted from the Proposed Rule because they are structured products that are already subject to strong governance, structural protections, and transparency requirements that effectively achieve (or exceed) the purported goals of the Proposed Rule. In the second part, we address the specific elements of the Proposed Rule and the specific issues they present for CLOs. We also recommend changes the SEC should make to the Proposed Rule if the SEC declines to exempt CLOs. Next, we explain why, in the event the SEC adopts final rules that apply to CLOs, the rules should be applied prospectively and not to existing CLOs which cannot reasonably be expected to amend their governing documents. We end the letter by describing our concerns regarding both the SEC’s statutory authority to adopt the Proposed Rules and whether, in proposing the rule, they performed an adequate cost-benefit analysis as required under the Administrative Procedure Act.