07.09.24

Private Funds Urge U.S. Regulator To Scrap Other Rules Following Appeals Court Victory

by: Carolina Mandl

Private fund groups asked the U.S. Securities and Exchange Commission (SEC) to withdraw three proposed rules aimed at investment advisors after a U.S. appeals court last month said the agency did not have the authority to oversee the sector. The Managed Funds Association and five other groups said the SEC should scrap proposed rules on artificial intelligence (AI), cybersecurity and outsourcing in light of the decision. The SEC has proposed three rules related to funds' use of technology. The predictive data analytics proposal aims to address conflicts of interest when advisors use AI to predict or direct investment-related behaviors or outcomes, while the outsourcing rule would ban advisors from outsourcing certain investment services. The third rule will require advisors and funds to adopt and implement written cybersecurity policies and procedures designed to address cybersecurity risks.

Read the full article on Reuters