On June 5, the 5th U.S. Circuit Court of Appeals rejected the Securities and Exchange Commission’s (SEC’s) private funds rule. The rule, which aimed to provide further details to investors in hedge funds and private equity firms, was overturned by the court on the premise that the SEC exceeded its authority in finalizing the rule.
The SEC’s rule, which was finalized in August, 2023, exempted securitized assets and collateralized loan obligations from compliance, in line with SFA’s previous advocacy.