Hedge Funds, PE Firms Accuse SEC of ‘Vast Power Grab’ With Rules

Hedge funds and private equity firms took a bigger swing in their legal fight with the Securities and Exchange Commission, alleging that the regulator lacked authority to impose a slate of new restrictions in August.

Trade groups including the American Investment Council and the Managed Funds Association said the SEC didn’t properly weigh costs and benefits of the regulations. They again asked a federal appeals court to gut the new rules, which require funds to disclose more about quarterly fees and expenses, as well as keeping some favored investors from cashing out before others.

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