In his speech, Gensler said that the fees and expenses that investors pay hedge fund and private-equity managers could be as much as $250 billion each year. The industry has “grown dramatically and yet it doesn’t seem to have benefited from, I’ll call it ‘economies of scale,”’ he said.
Topics Gensler said he’s asked the SEC staff to examine, include:
• Whether rule changes are needed to ensure that some investors don’t get preferential access to information through “side letters,” which are not shared with everyone that has an interest in a fund.
• What can be done to increase transparency into performance metrics used by private fund managers.
• Whether certain practices should be prohibited to prevent conflicts of interest.
How the SEC should “freshen up” the information included in Form PF, which private funds must file with the agency.
This article was provided by Bloomberg News.