U.S. Reps. Bill Huizenga (R-MI) and Steve Womack (R-AZ) expressed concerns with the Securities and Exchange Commission’s (SEC) proposed new rules for private fund advisors.
Specifically, the lawmakers expressed concerns that the new rules for private fund advisers did not include enough economic analysis and failed to consider the impact on underserved businesses and communities, including emerging minority and women-owned asset managers.
The lawmakers also noted that the SEC did not act upon the congressional directive to re-conduct the economic analysis that was included in the Consolidated Appropriations Act, 2023.
“Considering the speed at which the Commission is reportedly rushing through the proposed rule, we are submitting time sensitive requests to re-conduct the economic analysis and brief the Committee on Financial Services and the Subcommittee on Financial Services and General Government of the House Appropriations Committee on the underlying economic analysis and how the agency plans to comply with the congressional directive from last year’s appropriations law,” Huizenga and Womack wrote in a letter to SEC Chair Gary Gensler and the chief economist and director of the SEC’s Division of Economic and Risk Analysis, Jessica Wachter.
Huizenga is the chair of the House Financial Services Subcommittee on Oversight and Investigations, while Womack is the chair of the House Appropriations Subcommittee on Financial Services and General Government.
“A thorough and thoughtful analysis will be imperative to the long-term health of the private fund market, particularly for women-owned and minority asset managers. Such analysis should be made public and solicit public comment. To that end, we respectfully request a briefing from you to demonstrate that the Commission is conducting sufficient economic analysis of the proposed rule. This briefing should be conducted no later than July 14, 2023,” the lawmakers concluded in their letter.