Regulators proposed expansive new requirements for private investment funds Wednesday as part of a widening effort to police a rapidly growing but relatively opaque corner of the capital markets, the Wall Street Journal reported. In a Wednesday morning meeting, the Securities and Exchange Commission passed a proposal that would force hedge funds and private-equity funds to provide basic disclosures to their investors and guard against conflicts. The Democratic-controlled commission approved the proposal by a 3-to-1 vote, signaling a strong chance that a final version will be adopted. The agency will now seek public comments for at least two months before issuing a final rule. Since taking office last April, SEC Chairman Gary Gensler has moved to aggressively tighten rules on Wall Street intermediaries, aiming to save money for investors and companies raising capital. A major focus in recent weeks has been on private markets, where firms operate with far less government oversight than publicly traded companies or mutual funds.
