Published: June 2022

Establish new rules to provide investors with new and necessary information they need in order to make the best decisions possible

In a letter to the SEC, advocates sent a comment letter to the Securities and Exchange Commission supporting several of its proposals that would better protect investors in private funds (such as hedge funds and private equity firms), where they currently do not have the basic, necessary information they need to make informed decisions.

Consumer Action joined Americans for Financial Reform and more than two dozen other consumer protection organizations in urging the Securities and Exchange Commission (SEC) to implement new rules that would provide crucial information to investors in private funds (such as hedge funds and private equity firms) so that they can make informed decisions. The growth in private funds has greatly outpaced the rules governing those funds, putting investors at risk. Among other things, the proposed updated rules would require: a detailing of all the different fees and expenses charged by the fund; disclosure of how the fund’s return (performance) figures are calculated; mandatory annual fund audits; and a prohibition on certain hidden conflicts and fees that unduly enrich the fund adviser at the expense of investors. 

Lead Organization

Americans for Financial Reform Education Fund

More Information

Read the letter here.

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