SEC Does Not Pursue Rehearing on Private Fund Adviser Rule Decision
Commentary by Steven Lofchie
The Managed Funds Association ("MFA") reported that the SEC has not asked for a rehearing of the Fifth Circuit's rejection of the SEC's private fund adviser rule.
In National Association of Private Fund Managers v. SEC, the Fifth Circuit determined that existing law did not provide the SEC the authority to issue rules covering private investment funds. (See previous coverage.)
The deadline for an appeal to the Fifth Circuit was July 22, 2024.
Commentary
Although the SEC could still appeal to the Supreme Court, that it is not asking for a rehearing before the Fifth Circuit would seem to indicate that it is resigned to the defeat. Further, it may be reasonable to question whether the SEC would want to antagonize the private fund industry further in the period immediately before an election.
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