SEC Targeting Asset Managers With New Rules

In an anticipated move, the Securities and Exchange Commission is in the process of writing new rules targeting the $50 trillion asset management industry.

SEC targeting asset managers engaged in sophisticated strategies

The target are likely those mutual funds, hedge fund and private equity investments that engage in sophisticated strategies utilizing derivatives and executing a long / short investment strategy of both buying and selling stocks. A particular focus could be alternative investing mutual funds, who might be forced to limit the use of excessive derivatives leverage.

The review, according to a Wall Street Journal report, is...