The US Securities and Exchange Commission Aug. 10 proposed requiring private funds to report confidentially to the agency about their spending on litigation finance . The funding, which litigants and law firms use to cover their costs, has reached billions of dollars.
The potential reporting is part of a broader hedge fund transparency push by SEC Chair Gary Gensler, who said his agency is trying to better protect investors and monitor systemic risk to the US economy. The SEC can bring cases against hedge funds for false or misleading disclosures.
Source: Hedge Fund Lawsuit Financing Poised for SEC Enforcement Scrutiny
