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AIMA and the Managed Funds Association (MFA) joined with four other industry trade groups to file a lawsuit appealing the SEC’s newly adopted changes to the Private Fund Adviser rule.
“The adoption of the rules is both harmful and unlawful and lacks proper economic analysis of the effect on the private funds industry and the essential source of capital it provides,” said Jack Inglis, CEO of AIMA.
“The SEC has overstepped its statutory authority and core legislative mandate, leaving us no choice but to litigate,” said MFA president and CEO Bryan Corbett.
“The Private Fund Adviser rule will harm investors, fund managers, and markets by increasing costs, undermining competition, and reducing investment opportunities for pensions, foundations, and endowments.”
The petitioners believe the rule exceeds the SEC’s authority under the Investment Advisers Act of 1940 and conflicts with its stated mission to protect investors, and maintain fair, orderly and efficient markets.
The other trade association are: the National Association of Private Fund Managers (NAPFM), National Venture Capital Association (NVCA), American Investment Council (AIC) and Loan Syndications & Trading Association (LSTA).
Their lawsuit was filed in the US Court of Appeals for the Fifth Circuit against the SEC.