5th Circuit Court of Appeals overturns SEC rule mandating fee disclosure by hedge funds and private equity firms.

The US Fifth Circuit Court of Appeals overturned a Securities and Exchange Commission (SEC) rule requiring hedge funds and private equity firms to disclose quarterly fees and expenses to investors. The court sided with the private fund industry, which argued that the SEC overstepped its authority and that the rules were unnecessary for highly sophisticated investors. The ruling is a setback for the SEC, which aimed to bring increased transparency to the $27 trillion private funds industry.

June 05, 2024
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