Trade groups for the world’s largest hedge funds and private equity firms asked the Securities and Exchange Commission to withdraw three proposed rules, including plans on artificial intelligence, in the wake of a recent appeals court ruling.
MFA—formerly the Managed Funds Association—and the National Association of Private Fund Managers were among the groups that signed a letter Tuesday arguing the SEC doesn’t have the power to apply the rules to private fund advisers.
One targeted proposal would require firms to assess whether their use of predictive data analytics or AI poses conflicts of interest. The others would restrict investment advisers …