ANALYSIS: Dodd-Frank Is Focus for Private Fund Adviser Rule Fate

The fate of the SEC’s controversial Private Fund Adviser rules likely rests with the Fifth Circuit. How the court rules on the issue of whether the Dodd-Frank Act gave the SEC the authority to write that rule could have important consequences for the agency.

The Securities and Exchange Commission’s recent efforts to bring more transparency and regulation to private fund advisers and the $26 trillion private funds industry has elicited cries of protest and a lawsuit from industry groups.

During oral arguments in the Fifth Circuit case in February, the three-judge panel’s questions focused on the SEC’s claim of broad ...