SEC Fights Challenge to Hedge Fund and PE Firm Fee Disclosure Rules

  • Agency chair Gensler tightened grip on fast-growing industry
  • Private fund groups say regulator overstepped its authority

The SEC headquarters in Washington, DC.

Photographer: Graeme Sloan/Bloomberg
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The US Securities and Exchange Commission is trying to fend off a legal challenge to agency rules requiring hedge funds and private equity firms to detail quarterly fees and expenses to investors.

The regulator faced tough questioning from a three-judge panel as it faced off Monday against the Managed Funds Association and other trade groups in a hearing at the US Fifth Circuit Court of Appeals in New Orleans.