SIFMA Says SEC Private Fund Rule Could Stifle Innovation

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By Al Barbarino (April 27, 2022, 8:02 PM EDT) — A U.S. Securities and Exchange Commission proposal to increase private fund advisers’ disclosures could stifle the innovation that made the industry a success to begin with, interfering with the ability of wealthy investors to negotiate the terms of deals, according to the Securities Industry and Financial Markets Association.

The Feb. 9 proposal would “significantly hamper” the ability of institutional, wealthy and “sophisticated” investors to negotiate investment terms, and the agency ought to keep the focus of its limited resources on protecting retail investors, SIFMA argued in a comment letter submitted Monday.

“Sophisticated parties should have flexibility to negotiate the investment structures…

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