Six entities sue SEC

Ritu13

Financial reports indicate that six entities representing private equity, venture capital, and hedge fund businesses have filed a lawsuit against the U.S. Securities and Exchange Commission (SEC). They allege that the agency, under the leadership of Chairman Gary Gensler, has exceeded its authority in creating a series of new regulations governing the $27 trillion private equity fund industry. In August, the SEC voted 3-2 to require previously lightly regulated firms to disclose more about their performance and fees to clients and to ban practices that secretly offer preferential terms to certain investors over others. Gary Gensler has introduced one of the most interventionist regulatory agendas for the U.S. financial industry since the global financial crisis, spanning from cryptocurrencies to carbon emissions, from asset custody to the Treasury market. Even before this aggressive move against private equity funds, the SEC had already surpassed the previous administration in terms of the number of substantial new rules passed.