In the News

Fifth Circuit: SEC Lacks Authority for New Private Fund Rules, IFLR

June 19, 2024

Partners Christine Schleppegrell and Christine Lombardo were quoted in an IFLR article that discussed a US appeals court ruling that struck down a US Securities and Exchange Commission (SEC) attempt to step up its regulation of private funds.

The SEC could, as an alternative to further appeals, “repropose some or all of the rules under different legal authority, although that could be challenging in light of the court’s interpretation of the SEC’s authority under Section 206(4).”

“The adopting release [in August 2023] is instructive in understanding practices and issues that the current SEC is focused on. It’s important that fund managers don’t throw these rules out in their entirety,” said Christine Lombardo.

“The focus for investors will be on thinking about which parts of these initiatives they will want to advocate for in the future in trying to make some of these that used to be requirements under the private fund rules best practices. How do we take parts of the rules that were good and beneficial and advance the ball, even in the absence of a formal rule?” said Christine Schleppegrell.

Read the full IFLR article >>
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