SEC Hedge Fund Fee Disclosure Rule Struck Down by US Court (3)

A federal appeals court struck down the US Securities and Exchange Commission’s rules requiring hedge funds and private equity firms to detail quarterly fees and expenses to investors — a significant setback in the regulator’s clampdown on the private-funds industry.

A three-judge panel of the US 5th Circuit Court of Appeals in New Orleans on Wednesday sided with industry groups, who argued that the agency overstepped its authority and that rules weren’t necessary for the “highly sophisticated” investors that pour money into private funds. Writing for the panel, Judge Kurt D. Engelhardt said the SEC “exceeded its statutory authority” ...