Hedge fund, SEC rule on commissions rejected | EUROtoday

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A federal appeals court docket has struck down U.S. Securities and Exchange Commission guidelines requiring hedge funds and personal fairness companies to supply buyers with detailed details about charges and bills. The resolution represents a major setback within the regulator's crackdown on the non-public funds sector.

A 3-judge panel of the Court of Appeals in New Orleans sided with trade teams, who argued that the company had overstepped its authority and that the principles have been pointless for “highly sophisticated” buyers pouring cash into non-public funds. According to Judge Kurt D. Engelhardt, the SEC “exceeded its statutory authority” by adopting the rule.

The regulation was simply one in all many guidelines the regulator tried to impose on hedge funds and personal fairness companies. SEC Chairman Gary Gensler has prioritized oversight of the $26 trillion market, which he says lacks transparency and will contribute to dangers to monetary stability.

In a press release launched following the ruling, the hedge funds hailed the choice as «a major victory for the markets, fund managers and buyers», hinting at a attainable second episode of their battle by speaking about «the extreme scope of the SEC”.

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