Fifth Circuit Vacates Private Fund Adviser Rules in Entirety

June 5, 2024

On June 5, 2024, the U.S. Court of Appeals for the Fifth Circuit issued its opinion on National Association of Private Fund Managers et. al. vs. Securities and Exchange Commission, the lawsuit brought by a group of trade associations representing the private funds industry against the Securities and Exchange Commission (“SEC” or the “Commission”) challenging the validity and enforceability of the SEC’s Private Fund Adviser Rules (“PFAR”). 

The SEC released the final version of PFAR, along with an adopting release, in August 2023.  Within a matter of days, the group of six trade associations  (the “Petitioners”) filed with the Fifth Circuit a Petition for Review, requesting that the court vacate and set aside the final order of the SEC in Private Fund Advisers; Documentation of Registered Investment Adviser Compliance Reviews, Release No. IA-6383. 

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