Hedge Funds, Private Equity Sue SEC Over Fee Disclosure Rule (2)

Trade groups for the world’s biggest hedge funds and private equity firms are taking the US Securities and Exchange to court over new restrictions it placed on the industry last month.

The American Investment Council and the Managed Funds Association are among the groups alleging the SEC went too far by rolling out sweeping rules mandating disclosures and barring firms from doing sweetheart deals with some investors. The organizations, which also represent a swath of smaller firms, asked the court to overturn the regulations.

“The new rules would fundamentally change the way private funds are regulated in America,” ...