The SEC’s Proposed Rule Could Set Financial investment Managers on the Hook for Losses. They are Not Delighted About It.

Fund professionals and their attorneys are worried about the Securities and Trade Commission’s proposed private fund adviser rule — and not because of the transparency prerequisites they might quickly experience.  

Rather, they’re concerned about a delicate language change: the new rule would make supervisors liable for “negligence,” instead than “gross negligence” as experienced been the situation earlier.  

In accordance to fund administrators and lawyers, this indicates asset owners and allocators could even sue expense administrators for expense losses. 

“It is a meteor that could screw up the market for everyone,” claimed 1 trader, who spoke with Institutional Trader on the

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