US appeals court rejects SEC's new disclosure rules for private equity and hedge funds

A ‘significant victory’ for markets

A US appeals court has blocked the Securities and Exchange Commission from adopting new rules that would have required private equity and hedge funds to improve transparency and change the way they do business with clients.

According to a report by the FT, the New Orleans-based 5th US Circuit Court of Appeals decided the SEC had overstepped its authority when it sought to change the rules in August 2023. The proposals would have required fund managers to provide detailed quarterly results to investors, as well as expense reports and limit secret side deals. US private fund industry bodies sue SEC over new disclosure rules As a result, a group of six US trade bodies representing hedge funds and private markets firms filed a lawsuit against the US regulator over its "unlawful and harmful" rules they arg...