Yesterday, the Gensler Commission lost another round with the private funds sector over the limits of its statutory authority . In this round, the District Court for the Northern District of Texas (Fort Worth Division) vacated and set aside two dealer rules, Rule 3a5-4 and Rule 3a44-2 under the Securities Exchange Act of 1934 (“Exchange Act”). ...
Continue reading Download PDFYesterday, 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....
Continue reading Download PDFAs widely anticipated, the private funds industry sued the Securities and Exchange Commission (“SEC”) seeking the invalidation and the postponement of the compliance date of recently adopted dealer rules [National Association of Private Fund Managers v. SEC, Case No. 4:24-cv-00250 (N.D. Tex., Ft. Worth Div.) (March 18, 2024)]. The suit, filed in the business friendly Fifth Circuit, joins another suit against the SEC also seeking to vacate recently adopted private fund adviser rules. ...
Continue reading Download PDFAs a federal lobbyist, it is not every day that I have an opportunity to advocate for legislation that is supported by thousands of different companies in numerous industries. Further, it is perhaps even less likely these days to be able to work an issue that has strong bipartisan and bicameral support in Washington, DC....
Continue reading Download PDFToday, the Federal Register published the newly adopted dealer registration rules, meaning certain traders (heretofore previously exempt from dealer registration) must register with the Securities and Exchange Commission (“SEC”) and become members of the Financial Industry Regulatory Authority (“FINRA”) by April 29, 2025. ...
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