A federal appeals court has struck down the US SEC's rules requiring hedge funds and private equity firms to detail quarterly fees and expenses to investors. This decision, made by the Fifth Circuit on June 5, 2024, represents a significant setback for the SEC's efforts to increase transparency in the private-funds industry. The court ruled that the SEC's Private Funds Rule exceeded the agency's statutory authority, undermining SEC Chair Gary Gensler's initiative to more closely regulate private investment funds.
Mid-Year Enforcement Update: SEC’s Continued Focus on Private Funds in 2024 https://t.co/6zj6vOE3Xz #Securities #Money #Court @ReutersBiz https://t.co/x9QO7qKdOG
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On June 5, 2024, the Fifth Circuit vacated the long-awaited SEC Private Funds Rule as in excess of the agency's statutory authority. This decision upends SEC Chair Gary Gensler's long-held ambition to more closely regulate private investment funds, and throws one of the biggest… https://t.co/seFdKYns7d
Mid-Year Enforcement Update: SEC’s Continued Focus on Private Funds in 2024 https://t.co/6zj6vOE3Xz #Securities #Money #Court @proskauer https://t.co/xdvrsZqr2m
Last week, a federal appeals court struck down the US SEC's rules requiring hedge funds and private equity firms to detail quarterly fees and expenses to investors — a significant setback in the regulator’s clampdown on the private-funds industry, per Bloomberg.