09:02 AM EDT, 09/05/2024 (MT Newswires) -- (Updates with SEC response in the fourth paragraph.)

The US Securities and Exchange Commission did not ask the Supreme Court to revive new disclosure requirements for fees charged to investors by hedge funds and private equity firms by the Tuesday deadline, Bloomberg reported, citing a person familiar with the matter.

The regulator's decision not to act ends the dispute, marking a victory for industry groups and a setback for the SEC, which has been pushing for more transparency in the industry, according to the report.

A three-judge panel in the 5th US Circuit Court of Appeals struck down the rule in June and ruled that the SEC had exceeded its authority, Bloomberg reported.

"We're proud of the rule and the benefits it would have conferred to investors in private funds," an SEC spokesperson told MT Newswires in an email. "We believe the rule fit squarely within our authorities and were disappointed with the Fifth Circuit's decision. We've made the strategic decision to focus resources on adopting and implementing other items on our rulemaking agenda."

Drew Maloney, president and CEO of the American Investment Council, said in an emailed comment to MT Newswires that "The SEC made the right decision." He added that "private capital will continue to power innovation, small businesses, and jobs throughout the American economy."

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