Wall Street’s top regular is set to compel hedge funds and private equity groups to disclose quarterly results and fees charged to investors, according to a report by FT on Wednesday.
The SEC will vote on a series of proposals that would require yearly audits of private funds, prohibit certain fees that buyout shops charge, and prohibit preferential terms for some investors.
The regulator also pushed for rules increasing the time it takes for stock and bond trades to be completed.
Strengthening regulation for private fund advisers is targeted to protecting investors like hedge funds, private equity groups, and venture capital funds that have accumulated over $18trillionn in gross assets.
The move comes after big investors such as pension funds and endowments are pushing into alternative assets as the outlook for returns in public markets eases.
Gary Gensler, SEC chair stated that private fund advisers via the funds impact significantly on the economy.
The proposals are among the SEC’s strongest moves to boost oversight of fast-growing private financial markets since the implementation of the Dodd-Frank Act. S&P 500 up +1.31%