Julius Chen Quoted on Oral Arguments Challenging SEC’s Private Funds Rule
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For its article “SEC, trade groups spar over private funds rule in federal court,” Pensions & Investments quoted Akin Supreme Court & appellate partner Julius Chen regarding oral arguments in the challenge made by private fund trade groups over the SEC’s new private funds rule.
Julius said that the judges' questions to SEC attorney Jeffrey Berger revealed a "clear skepticism over the sweeping reach of the rule."
"The panel even suggested that it would not be reasonable for the SEC to justify regulation of an industry of this size based on a smattering of examples of alleged wrongdoing, especially when economic reality indicates that the existing regime has been a market success," he added. "In the end, the main question for the petitioners' counsel seemed to be how far the court might go in vacating the rule, which is a promising sign for the private funds industry."
