US SEC votes on overhaul for $20T private fund industry

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The SEC's five-member panel will vote on the changes, proposed last year, aimed at increasing transparency, fairness and accountability in the $20.4 trillion private funds industry.

SlateStone Wealth chief market strategist Kenny Polcari and SW Retail Advisors founder Stacey Widlitz analyze today's stock market action and discuss the retail earnings picture on 'The Claman Countdown.'on Wednesday is set to finalize a sweeping overhaul of private equity and hedge fund rules, but stopped short of banning certain fees and making it easier for investors to sue fund managers, in a victory for the industry.

The Securities and Exchange Commission's five-member panel will vote on the changes, proposed last year, aimed at increasing transparency, fairness and accountability in the $20.4 trillion private funds industry which has more than doubled its assets over the past decade, agency data shows.

At the time it was proposed, SEC Chair Gary Gensler said the changes would benefit investors in such funds, typically wealthy individuals and institutional investors like pension funds, and companies raising capital from them. SEC Chair Gary Gensler testifies before a Senate Banking, Housing, and Urban Affairs Committee oversight hearing on the SEC on Sept. 14, 2021, in Washington, D.C."Private fund advisers, through the funds they manage, touch so much of our economy."

While the changes mark the biggest overhaul of industry rules in years, the SEC rowed back on some contentious proposals after major players, including Citadel and Andreesen Horowitz, argued the agency was overreaching its authority by attempting to bar long-established fee structures and liability terms.

 

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