SEC sees legal action from 6 groups over private fund rules
<img width="250" height="167" src="https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-SEC-sees-legal-action-from-6-groups-over-private-fund-rules-iStock-1473095526-250×167.jpg" class="webfeedsFeaturedVisual wp-post-image" alt="" decoding="async" style="float: left; margin-right: 5px;" link_thumbnail="" srcset="https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-SEC-sees-legal-action-from-6-groups-over-private-fund-rules-iStock-1473095526-250×167.jpg 250w, https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-SEC-sees-legal-action-from-6-groups-over-private-fund-rules-iStock-1473095526-700×467.jpg 700w, https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-SEC-sees-legal-action-from-6-groups-over-private-fund-rules-iStock-1473095526-768×512.jpg 768w, https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-SEC-sees-legal-action-from-6-groups-over-private-fund-rules-iStock-1473095526-120×80.jpg 120w, https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-SEC-sees-legal-action-from-6-groups-over-private-fund-rules-iStock-1473095526-245×163.jpg 245w, https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-SEC-sees-legal-action-from-6-groups-over-private-fund-rules-iStock-1473095526-500×333.jpg 500w, https://www.leaprate.com/wp-content/uploads/2023/09/FIN-LP-SEC-sees-legal-action-from-6-groups-over-private-fund-rules-iStock-1473095526.jpg 1254w" sizes="(max-width: 250px) 100vw, 250px" /><p><span data-contrast="auto">The new stipulations oblige private funds to submit quarterly fee and performance reports on top of annual audits. Additionally, funds must disclose specified fee structures and curb the preferential treatment of some investors, especially regarding portfolio disclosures and cash-out abilities.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p>
<p><span data-contrast="auto">This industry administers around $20trn in assets. Gary Gensler, the SEC chair, stated these measures are justified seeing advocacy groups alleged the private fund industry lacked transparency, causing conflicts of interest. A SEC spokesperson emphasised that the regulator approaches new rules and amendments to existing ones with consistency in line with its powers and administrative processes.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span><br />
[Thursday 11:19] Katharine Hawkins</p>
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<p><span data-contrast="auto">However, a suit filed in the 5</span><span data-contrast="auto">th</span><span data-contrast="auto"> U.S. Circuit Court of Appeals by the Managed Funds Association, National Venture Capital Association, American Investment Council, Alternative Investment Management Association, National Association of Private Fund Managers, and the Loan Syndications & Trading Association, claims the opposite.</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p>
<p><span data-contrast="auto">The Chief Executive Officer of the Managed Funds Association believes these new rules will only increase costs and hamstring competition. In a combined statement, the associations said:</span><span data-ccp-props="{"201341983":0,"335559739":160,"335559740":259}"> </span></p>
<blockquote><p><span data-contrast="auto">The rules exceed the Commission’s statutory authority, were adopted without compliance with notice-and-comment requirements, and are otherwise arbitrary, capricious, an abuse of discretion, and contrary to law, all in violation of the Administrative Procedure Act.</span><span data-ccp-props="{"201341983":0,"335559685":720,"335559739":160,"335559740":259}"> </span></p></blockquote>
<p>The post <a rel="nofollow" href="https://www.leaprate.com/news/sec-sees-legal-action-from-6-groups-over-private-fund-rules/">SEC sees legal action from 6 groups over private fund rules</a> appeared first on <a rel="nofollow" href="https://www.leaprate.com">LeapRate</a>.</p>
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