SEC’s Power to Regulate Hedge Funds Dealt Blow by Appeals Court

Val Dahiya was quoted in the Bloomberg Law article, “SEC's Power to Regulate Hedge Funds Dealt Blow by Appeals Court.” The article explores how the Securities and Exchange Commission’s loss in court over new restrictions on hedge funds and private equity firms casts a cloud over its other plans on artificial intelligence and climate change. The appeals court, which has a reputation for being business-friendly, said the SEC can’t rely on that section to dictate sales practices and compensation between private funds and institutional investors.

Val notes that, “The SEC hasn’t taken a one-shot approach...They are attacking this on multiple levels, with the understanding that some of these rules survive.”

Read the full article.