5th Circuit Finds SEC Lacked Authority To Enact New Private Fund Rule

(June 6, 2024, 2:03 PM EDT) -- NEW ORLEANS — A panel of the Fifth Circuit U.S. Court of Appeals on June 5 found that the Securities and Exchange Commission exceeded its statutory authority when it adopted a rule designed to increase regulations on private funds, holding that the Dodd-Frank Wall Street Reform and Protection Act only allowed the SEC to implement rules related to retail investors, who do not typically invest in private funds....