Activist Hedge Funds Get Less Time to Disclose 5%-Plus Stakes Under SEC Rule
- SEC approves new threshold for disclosing stock ownership
- Regulator clarifies when some derivatives trigger reporting
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Activist hedge funds and other investors will have far less time to disclose when they amass significant stakes in companies under a new rule from the Securities and Exchange Commission.
The SEC will give fund managers just five days, compared with the prior requirement of 10 days, to report they’ve bought up 5% or more of a company’s stock. The regulations are intended to give other investors more transparency, the agency said in a statement Tuesday.