Hedge Funds, PE Firms Face New SEC Demands to Disclose Fees (2)

Private equity firms and hedge funds are facing increasing pressure to be more transparent as the U.S. Securities and Exchange Commission pushes them to provide expansive disclosures on fees and expenses.

The SEC proposal, which the regulator introduced on Wednesday, calls for quarterly reports to investors that include specific measures of performance and that account for all costs. The rules would make an industry known for varying levels of disclosure adhere to strict new standards.

Since taking office in April, SEC Chair Gary Gensler has maintained that private funds’ fees are opaque and too high, presenting a risk to investors ...