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April 27, 2022

Better Markets Supports SEC Proposal to Increase Transparency and Rein in Abuses by Private Fund Advisers

WASHINGTON, D.C.—Legal Director and Securities Specialist Stephen Hall issued the following statement on the filing of Better Markets’ Comment Letter to the Securities and Exchange Commission (SEC) on the agency’s proposed rule that would require enhanced disclosures by private fund advisers and prohibit adviser practices that are especially harmful to fund investors:

“The private funds industry has escaped meaningful oversight for far too long, operating largely in the shadows.  This has led to the growth of an appalling array of unfair, predatory, and opaque practices that have become all too common in the world of private fund advisers—everything from convoluted fee and expense formulas to distorted fund performance calculations and arrangements that enrich and protect advisers at the expense of investors. The dozens of enforcement actions and SEC settlements with private fund advisers over the past decade confirm that this shadowy and often predatory marketplace is ripe for sorely needed transparency and fairness.

“These abuses don’t just hurt the wealthy individuals and institutional players in the private funds world.  The fact is that millions of everyday Americans participate indirectly in these markets through their pension plans and mutual funds.  And private funds continue to expand, now passing the $18 trillion mark, which also means that they can have a powerful impact on the stability of our financial system.

“The SEC is rightly taking action under the authority it received in the Dodd-Frank Act, and its proposal will go a long way toward addressing these problems.  The rule would require more complete and standardized quarterly disclosure to investors regarding fees, expenses, and fund performance. It would also prohibit certain conflicts of interest, compensation schemes, and other practices that harm investors.  And it would back up these reforms with new audit and books-and-records requirements.  The SEC should move swiftly to finalize this proposal to better protect investors and our capital markets.”

Read our full comment letter here or click the button below.


Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit

Contact: Anton Becker, Communications Director, at 202-618-6430 or



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