Tag: Private funds

The Gensler SEC Loses Again – WSJ

Talk about a rough few days for the Securities and Exchange Commission. The Fifth Circuit Court of Appeals last Wednesday blocked its private-fund disclosure rule. And the agency announced it is closing a regional office after getting sanctioned by a federal judge. Unsatisfied with his day job, Chairman Gary Gensler has been seeking to expand the agency’s power over America’s…

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Private Funds Accuse SEC of ‘Wildly Inconsistent’ Rules Approach

Private funds took their opening swing in a legal fight with the Securities and Exchange Commission, telling an appeals court that rules forcing investors to reveal more about short selling and stock lending are arbitrary and capricious. Trade groups including the National Association of Private Fund Managers and MFA—formerly known as the Managed Funds Association—said the SEC adopted two rules…

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Private-Fund Lobbyists Get Set for High-Stakes SEC Court Fight – WSJ

Regulators and the private-equity industry are gearing up for a trial that could determine the government’s ability to set rules for buyout funds, with some business interests hoping the case could loosen regulators’ hold on Wall Street. On Feb. 5, a three-judge panel for the Fifth Circuit Court of Appeals is set to hear oral arguments in a challenge private-fund lobbyists mounted…

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Wall Street Braces for More SEC Scrutiny of AI, Private Funds

The Securities and Exchange Commission is racing to safeguard its most consequential rules from any future changes in the administration or in Congress. The SEC is targeting April to finalize almost two dozen rules, including those related to climate disclosure, according to the Biden administration’s regulatory agenda. More than a dozen other rule proposals are also in the works. The…

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The Cost of Private Fund Regulation

The huge gap between the SEC’s and advisers’ cost estimates is concerning because the SEC routinely justifies its rules on cost-benefit grounds. If the SEC is naïve about how burdensome its rules are, it risks overregulated and slowing down economic growth. On the other hand, it is hard to know how much to trust industry members’ cost estimates. After all,…

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Regulatory Spotlight on Private Funds

The end of September marked the close of the 2023 fiscal year for the United States Securities and Exchange Commission (the “SEC”). In remarks last week, SEC Director of Enforcement, Gurbir Grewal, noted that, “[w]hile we have not yet released our 2023 fiscal year-end numbers, I can give you a sneak preview: we had another incredibly productive year on behalf…

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2023 Fiscal Year in Review: SEC Enforcement Actions Against Investment Advisers to Private Funds, Registered Funds, and Retail Clients | Sidley Austin LLP

In its 2023 fiscal year that ended on September 30, the U.S. Securities and Exchange Commission (SEC or Commission) brought over 150 enforcement actions against investment advisers and their representatives. A review of notable actions under the Investment Advisers Act of 1940 reveals a number of trends likely to continue into FY2024, including aggressive enforcement in areas of focus for…

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Private funds prepare to spend billions on compliance after SEC rule | Financial Times

Private equity, venture capital and hedge fund groups are preparing to spend billions of dollars on compliance and legal advice as they cope with the biggest regulatory changes to hit the industry since the aftermath of the 2008 crisis. The US Securities and Exchange Commission’s decision last month to adopt sweeping new rules for the private fund industry is prompting…

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