Hedge Funds Face SEC Rule for Faster Disclosure of 5% Stakes
- Rule change would cut reporting time frame to five days
- Agency also proposed changes to whistle-blower regulations
Gary Gensler
Photographer: Evelyn Hockstein/Reuters/Bloomberg
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Hedge funds and other investors would have less time to disclose that they’ve acquired a significant stake in a company under new rules proposed by the U.S. Securities and Exchange Commission.
Fund managers would have only five days to disclose ownership of 5% or more of a company’s shares, down from the current 10 days, under a plan announced by the SEC Thursday. Also, amendments to the filings would have to be filed within one business day.