Jeremiah Williams Discusses Challenge to SEC Private Fund Rules in The Wall Street Journal

Several trade associations have challenged the SEC’s new private fund rules, asking the Fifth Circuit Court of Appeals in New Orleans to forgo the rules altogether.

Litigation & enforcement partner Jeremiah Williams told The Wall Street Journal Pro that, “while the SEC has broad authority to regulate investment advisers, it has never used that power over private-fund managers in such an ambitious way.” The trade-group lawsuit is “a serious challenge” to the agency’s new rules, Jeramiah said.

There have been lawsuits against the regulator before, “but nothing that has [questioned] the SEC’s role and power to regulate private funds. That question will be squared up here for the first time,” he said.