Hedge Funds and Private Equity Firms Face SEC Demand to Disclose Fees and Costs
- SEC Chair Gensler has said firms’ charges opaque and too high
- Industry, Republican commissioner say rules are unnecessary
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Private equity firms and hedge funds are facing increasing pressure to be more transparent as the U.S. Securities and Exchange Commission pushes them to provide expansive disclosures on fees and expenses.
The SEC proposal, which the regulator introduced on Wednesday, calls for quarterly reports to investors that include specific measures of performance and that account for all costs. The rules would make an industry known for varying levels of disclosure adhere to strict new standards.