SEC to Advocate For More Transparent Fee Disclosures from Private Equity Firms

Posted on February 9th, 2022 at 1:09 PM

From the Desk of Jim Eccleston at Eccleston Law:

The rules would compel private equity firms to disclose specific expenses that are passed onto clients. Additionally, the rule would provide guidance on how frequently private equity firms are required to provide the disclosures. SEC Chair Gary Gensler has recently criticized the industry’s fees too high and lacking transparency, which harms numerous investors including pension funds. However, private equity lobbyists are mobilizing in preparation for a legal battle as they plan to contend that fees are agreed to by sophisticated parties, according to those familiar with the matter. 

According to the SEC, pensions and endowments have invested heavily in private equity seeking higher returns in a period of low interest rates, which has enabled private equity funds to manager more than $4 trillion of assets. Last November, Gensler asked SEC staff to create a plan for promoting transparency into fee structures as well as the performance metrics utilized by private equity fund managers. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

 
 

Tags: eccleston, eccleston law, SEC

Return to Archive

TESTIMONIALS

Previous
Next

 


It was really fun seeing you fight for us. You have an amazing way of thinking out of the box.


 

Beth M.

LATEST NEWS AND ARTICLES

February 14, 2025
Jefferies Financial Group Dismisses Miami Advisory Team Amid Alleged Misconduct

Jefferies Financial Group recently terminated a team of Miami-based wealth advisors following allegations of improper money transfers and the use of unauthorized communication methods to conceal the activity.

February 13, 2025
FINRA Panel Denies J.P. Morgan's $39.7 Million Claim Against Former Advisor

A FINRA arbitration panel recently rejected J.P. Morgan Securities’ bid to recover $39.7 million in damages from Edward Turley, a former financial advisor whose alleged
misconduct led the firm to incur significant settlement costs.

February 12, 2025
Edward Jones Advisor Barred by FINRA Over Allegations of Unauthorized Account Changes

FINRA has barred Gwendolyn J. Hayes, a former Edward Jones advisor in Oregon after allegations surfaced that she altered client account information without authorization.