Hedge Funds, PE Firms Hit With New SEC Fee Disclosure Rules (2)

Hedge funds and private equity firms will have to disclose more about their fees and face new restrictions from the US Securities and Exchange Commissionon giving investors special treatment.

The rules adopted Wednesday will require private funds to detail quarterly fees and expenses to investors. Firms also will be prohibited from allowing some favored investors to cash out more easily than others — unless those deals are offered to all fund investors. It’s the latest bid by the SEC under Chair Gary Gensler to tighten its grip on the fast-growing, multitrillion-dollar industry.

Industry groups have said the SEC overstepped ...