The U.S. Securities and Exchange Commission will continue to oversee private fund advisers through examinations and enforcement efforts despite a federal appeals court striking down the agency rule regulating the space, securities lawyers said this week.
Last month, the U.S. Court of Appeals for the Fifth Circuit vacated the SEC’s rule, saying the agency exceeded its statutory authority by regulating those who advise investors in private fund opportunities. The SEC’s time for requesting a hearing by the full Fifth Circuit has expired with that court issuing a mandate yesterday.
