Kennedy to SEC Chair Gensler: 0.5% cost benefit, Alibaba CEO Jack Ma foreign advantages

SEC Chair Gary Gensler discussed the Consolidated Audit Trail (CAT) and the recent Fifth Circuit decision vacating the SEC’s private funds rule. Gensler testified at a June 13 hearing of the Senate Appropriations Committee, Financial Services and General Government subcommittee. Last week the Fifth Circuit struck down SEC rules enhancing regulation of private fund advisers. Gensler said the rule was based on a new provision in the Dodd Frank Act from Dodd Frank. The SEC thought and believed that it was within the law, but the Fifth Circuit found otherwise. “And we respect that, you know. We do things within the law and help courts interpret it,” said Gensler. He added in response to a question from Kennedy that the SEC is reviewing the decision and thinking about next steps.

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Kennedy to SEC Chair Gensler: 0.5% cost benefit, Alibaba CEO Jack Ma foreign advantages

Key Points

SEC Chair Gary Gensler discussed the Consolidated Audit Trail (CAT) and the recent Fifth Circuit decision vacating the SEC’s private funds rule

• Gensler testified at a June 13 hearing of the Senate Appropriations Committee, Financial Services and General Government subcommittee
• Last week the Fifth Circuit struck down SEC rules enhancing regulation of private fund advisers
• Gensler said the rule was based on a new provision in the Dodd Frank Act from Dodd Frank

Transcript Highlights

The following is transcribed from the video audio:

• The court seemed to seize on the fact that in terms of your fraud rule, based on the SEC’s experience out of the thousands and thousands of these private funds, you’ve only found 0
• But yet the requirement to comply with the private funds rule was going to cause the private funds industry over $5 billion a year
• Well, with all respect to any court and so forth, we put certain things in a filing and we listed, I don’t remember, a couple dozen examples, their exemplars
• What we do in enforcement is we have cases when it comes to our attention and we pursue that fraud and then we either set or we litigate
• And so we were giving some of those examples
• But again, we’re still looking at that case
• We’re looking at the opinion, trying to determine next steps
• But I think that in any area in the law, if we have examples of fraud, that’s to help protect the public
• And it’s not whether there’s tens of thousands of them, but in that case, a couple dozen real cases, real cases that we were able to point to
• But the question would be raised, and I’m going to shut it down, Chris, cost benefit

Full transcript: 1023 words transcribed via Whisper AI.