US SEC poised to adopt rules for $20 tln private fund industry

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Wall Street's top regulator is set next week to adopt new transparency rules for the $20-trillion private investment fund industry, according to an official notice, acting on a proposal that has drawn sharp industry objections.

The five-member U.S. Securities and Exchange Commission is also due to vote on Aug. 23 on a proposal, initially unveiled in 2015, that would require more broker-dealers to register with the Financial Industry Regulatory Authority .a set of changes for private fund advisers that would, among other things, require them to produce quarterly statements on performance and fees and submit to annual audits.

The final version of the proposal, which has not yet been released, may have changed after an extended notice-and-comment period. Democrats hold the majority on the commission, meaning the final version is virtually assured to pass. Lawmakers and regulators have sought to increase oversight of the private asset management sector, citing risks to financial stability and insufficient investor protections in an industry that according toFinancial-reform advocates and Democratic lawmakers have supported the changes, saying they would help protect millions of retirement savers, much of whose money is parked in privately managed funds, and the retail investors increasingly drawn to private credit funds.

 

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