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

I want to extend a tremendous thank you for your dedication, professionalism, hard work and patient demeanor through this challenging time. It was enjoyable interacting with everyone on your team, this certainly helped while dealing with the situation and working towards resolution.

Dan M.

LATEST NEWS AND ARTICLES

November 8, 2024
Former Advisor Faces Lawsuit Over Alleged Mishandling of Premium-Financed Life Insurance Plan

Joshua L. Gottlieb, barred by FINRA in 2017, faces a lawsuit alleging significant financial harm to a client following the sale of a premium-financed indexed universal life (IUL) insurance program. 

November 7, 2024
Fidelity Data Breach Exposes Sensitive Information of Over 77,000 Customers

According to InvestmentNews, Fidelity Investments recently disclosed a data breach affecting tens of thousands of customers, exposing sensitive personal data such as Social Security numbers and driver’s license information.

November 6, 2024
SEC Bars Advisor for $24 Million Ponzi Scheme Targeting Elderly Investors

The Securities and Exchange Commission (SEC) has barred Paul Horton Smith, a California-based advisor, for orchestrating a $24 million Ponzi scheme that defrauded elderly and retired investors.