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Could the SEC revive the private fund adviser rule?

Industry experts deem a second life for the reviled rule unlikely

Frankenstein’s monster

As private equity firms and hedge funds breathe a sigh of relief that a prohibitive new rule has been struck down, they now face the prospect that their regulator could try to revive it.

In June, a US court of appeals overturned the Securities and Exchange Commission’s (SEC) private fund adviser rule, which funds had argued could destroy their business.

The rule, which would have forced funds to

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