By Brian Croce
Source: Pensions & Investments
The Institutional Limited Partners Association, Council of Institutional Investors and 11 public pension funds, including CalSTRS, have filed an amicus brief in federal court supporting the SEC in a lawsuit brought by industry groups seeking to overturn a new SEC rule requiring increased disclosure from private fund advisers and prohibiting certain fee arrangements.
“The private fund adviser rules, at their core, are about protecting those benefiting by institutions’ investments in private funds — and doing so in accordance with the SEC’s statutory mandates,” the groups and pension funds, including the $304.9 billion California State Teachers’ Retirement System, West Sacramento, said in their brief filed Dec. 22 in the 5th U.S. Circuit Court of Appeals in New Orleans. “Everyday people are ultimately harmed when the institutions investing for their benefit are indirectly exposed to risk as a result of the imbalance of power between advisers and institutional investors and the information asymmetry around conflicts that can result.”