Alerts6.7.24
Fifth Circuit Vacates SEC’s Private Fund Adviser Rule
Highlights
On June 5, the Fifth Circuit Court of Appeals vacated in its entirety the SEC’s private fund adviser rule
This decision provides a reprieve for investment advisers, as certain compliance obligations under the rule were scheduled to come into effect in September 2024
It is unclear what further action the SEC will take in response to this decision
On June 5, the U.S. Court of Appeals for the Fifth Circuit vacated in its entirety the Securities and Exchange Commission’s (SEC) final “private fund adviser rule” under the Investment Advisers Act of 1940. In unanimously determining to vacate the rule, the three-judge panel held that the SEC exceeded its statutory authority by promulgating the rule and that the anti-fraud rationale is “pretextual.”
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