PRIVATE FUNDS RULE UPDATE
The U.S. Securities and Exchange Commission seems that it is foregoing its efforts to require more detailed disclosures from private fund managers as the SEC did not request a re-hearing of the June 5, 2024, the U.S. Court of Appeals for the Fifth Circuit ruling that unanimously vacated the Private Funds Rule.
The ruling of Fifth Circuit determined that the SEC “exceeded its statutory authority in adopting the Final Rule.” Although the SEC still has several weeks to petition the U.S. Supreme Court to review the Fifth Circuit’s June decision, it appears unlikely it will do so.
It remains to be seen whether the SEC would make the appeal to the Supreme Court and if the Supreme Court would take up the case. It is unclear how the Fifth Circuit’s ruling may impact additional SEC rulemakings, albeit narrower in scope, for private fund advisers in the future.
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