US Court Strikes Down SEC Rule‼️
The 5th U.S. Circuit Court of Appeals invalidated the Securities and Exchange Commission's (SEC) regulation aimed at improving the transparency of private funds. The court sided with private equity and hedge fund groups challenging the regulation, stating that the SEC had overstepped its authority.
It was stated that these regulations would increase compliance costs and reduce profits of financial services companies. The groups filing the lawsuit include the National Association of Private Fund Managers and the Alternative Investment Management Association. The court's decision could be considered a victory for the private fund industry, and uncertainty remains about the SEC's new rules.