Senate Democrats Urge SEC to Finish New Private Funds Rules (1)

A group of Democratic senators is urging the US Securities and Exchange Commission to finalize new rules designed to increase transparency for private investment firms following recent bouts of market volatility.

The rules, known as the Private Funds Proposal, would require private investors to obtain audited financial statements for their funds annually and distribute quarterly statements on fees and performance. They would also prohibit liability waivers for fund advisers.

Senator Elizabeth Warren on May 16.

Photographer: Al Drago/Bloomberg

The lawmakers, including Senator Elizabeth Warren and Senator Tammy Baldwin, said in a May 15 letter that they have been “troubled by several trends in the private markets,” including ...