The SEC adopted, by a 3-2 vote Wednesday, regulations aimed at increasing transparency in the multi-trillion-dollar private fund industry. But the agency eased—and in some cases abandoned—some of the most contentious parts of its initial proposal.
The SEC dropped a plan that would’ve exposed more fund managers to legal liability for mistakes, while softening its approach on side letters that give some investors special treatment. The final rule also permits various fund activities that would’ve been prohibited under the prior proposal, as long as they’re disclosed to investors.
‘Enforcement 40’ for 2020
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