An appeals court has struck down a Securities and Exchange Commission rule requiring private equity firms and hedge funds to disclose quarterly fees and expenses to investors, marking a win for the funds.

Hedge funds and related groups pushed back hard on the August 2023 rule, and a group of associations representing the firms challenged the regulation in court. The U.S. Court of Appeals for the 5th Circuit in New Orleans ruled unanimously that the SEC overstepped its bounds.

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