A coalition of six US trade bodies representing hedge funds and private markets firms have filed a suit against the Securities and Exchange Commission, alleging its new rules around disclosure are unlawful and harmful for the industry.
The lawsuit, filed on 1 September, argues that the new disclosure rules, which also prohibit groups from providing investors with preferential treatment, will "hamper the jobs, innovation, and other benefits private funds bring to the economy". Passing in a 3-2 vote in August, the rules require groups to provide investors with quarterly statements detailing certain information regarding fund fees, expenses, and performance. Furthermore, private fund advisers must obtain and distribute to investors an annual financial statement audit of each private fund they advise, as well as a fairn...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
