Fifth Circuit Vacates SEC Private Fund Adviser Rules
Yesterday, the private fund industry was victorious in its challenge to a package of private-fund adviser rules adopted in August 2023 by the Securities and Exchange Commission (“SEC” or “Commission”) [see National Association of Private Fund Managers et. al vs. SEC (No. 23-60471) (Fifth Cir. June 5, 2024)]. The rules, grounded in the SEC’s purported authority under Title IX of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”) and under general antifraud, unsuccessfully sought to prohibit, restrict, and regulate governance and operational aspects of private investment funds. As of today, the SEC has not publicly indicated if it will appeal the decision....
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