Saturday, September 25, 2021

US SEC chair seeks private fund fee disclosure, bond market transparency: testimony

WASHINGTON — The chairman of the top US securities regulator wants private funds to disclose more information to investors about potential conflicts of interest and the fees they charge, according to congressional testimony published Monday evening.

Securities and Exchange Commission (SEC) Chairman Gary Gensler also wants to enforce greater transparency on the corporate bond, municipal bond and asset-backed securities markets, which combined are worth $28 trillion, he wrote in the submitted testimony. Senate Banking Committee.

Gensler will appear before a congressional panel on Tuesday to question his agenda for the regulator.

“I believe we can increase disclosure in this area, enabling pensioners and others investing in these private funds to have the information they need to make investment decisions,” Gensler said. Wrote.

Meanwhile, in bond markets, trading data is often insufficient, leading to a liquidity crunch in times of stress, which was evident during last year’s market turmoil triggered by the COVID-19 pandemic. Was.

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“This market is very important to issuers. It is about 2.5 times larger than the roughly $10.5 trillion of commercial bank loans in our economy,” Gensler wrote in his testimony, without going into detail about the changes he is making. can.

Addressing fund fees and the bond market add to an already jam-packed agenda for the SEC, which is working on new corporate climate change-risk disclosures, cracking down on blank-check company deals, and the U.S. The equity market is overhauling many aspects of the structure. .

In addition, on Monday, Gensler, writing in a Wall Street Journal op-ed, urged Chinese companies to open their books and records to SEC scrutiny or the risk of being pulled out of US exchanges.

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by Katanga Johnson

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This News Originally From – The Epoch Times

US SEC chair seeks private fund fee disclosure, bond market transparency: testimony
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