By Nell Mackenzie
LONDON (Reuters) – Hedge fund industry lobbyists have sent a wish list to the U.S. Securities and Exchange Commission (SEC) asking for repeals and delays to much of the regulator’s hard-hitting agenda on industry transparency.
The Managed Fund Association (MFA) on Monday sent a letter to Mark Uyeda, President Donald Trump’s pick as acting chair of the U.S. Securities and Exchange Commission, who will take on the role from Gary Gensler on Tuesday.
WHY IT’S IMPORTANT
The $5 trillion hedge fund industry is asking for changes to happen on ‘Day One’ of Uyeda’s watch. These roll-backs would add a six-month delay on disclosure requirements, including those which would reveal to regulators more about what short bets funds have against stocks, and their rate of change.
The letter asks for a similar delay on a separate set of rules for hedge funds to tell the regulator their size, what assets they have and some detail on their leverage levels.
CONTEXT
The U.S. securities regulator adopted in 2023, new rules that aimed to shine a light on private equity and hedge fund expenses and fees, in a sweeping overhaul aimed at an industry long criticised for its opacity.
Monday’s letter asks for a months-long delay on these rules, some of which would have taken effect in February.
In the meantime, several hedge fund associations including the MFA have lawsuits pending against the SEC to knock back many of the rules issued during Gensler’s tenure.
THE RESPONSE
Uyeda, the acting SEC chair, has consistently been outspoken and critical about Gensler’s take on private funds, describing the rules in an October statement as “prescriptive.”
He did not immediately respond to a request for comment.
(Reporting by Nell Mackenzie; Editing by Dhara Ranasinghe and Sharon Singleton)