June 5 (Reuters) – A U.S. appeals court on Wednesday
rejected a Securities and Exchange Commission rule intended to
give investors more transparency into private funds, but which
the nearly $27 trillion industry said threatened to
fundamentally change how it does business.
The New Orleans-based 5th U.S. Circuit Court of Appeals
decided that the SEC exceeded its authority by adopting the rule
in August 2023. It ruled in favor of six private equity and
hedge fund groups that challenged the regulations.
The 5th Circuit decision is a victory for U.S. financial
services companies and trade groups that have gone to court
increasingly often to challenge rules they have argued would
boost compliance costs and reduce profits.
(Reporting by Jonathan Stempel in New York)