Reuters: House Republicans question SEC oversight of private equity funds

By Sarah N. Lynch

Two key Republicans in the U.S. House of Representatives are questioning whether federal securities regulators are spending too much of their time conducting compliance examinations of private equity fund advisers, saying sophisticated investors need less protection.

House Financial Services Committee Chairman Jeb Hensarling and New Jersey Republican Scott Garrett, who chairs the capital markets subcommittee, raised their concerns about the regulatory regime for private equity funds in a letter sent late Thursday to Securities and Exchange Commission Chair Mary Jo White.

“For these advisers, the SEC examination process has proven to be burdensome, costly, inefficient and inflexible,” Hensarling and Garrett wrote.

“Subjecting this set of advisers to the examination process does not appreciably further the goals of investor protection or financial stability.”

SEC spokesman John Nester declined to comment on the letter, which asks White for a written response to questions concerning the agency’s examinations program.

To continue reading, please click here.