Hedge Funds Face SEC Rule for Faster Disclosure of 5% Stakes (1)

Hedge funds and other investors would have less time to disclose that they’ve acquired a significant stake in a company under new rules proposed by the U.S. Securities and Exchange Commission.

Fund managers would have only five days to disclose ownership of 5% or more of a company’s shares, down from the current 10 days, under a plan announced by the SEC Thursday. Also, amendments to the filings would have to be filed within one business day.

The proposed changes represent the latest move by the SEC under Chair Gary Gensler to bring more transparency to the private-fund industry. Corporate ...