(Bloomberg) — A controversial U.S. Securities and Exchange Commission plan that would let many hedge funds conceal their stock picks is generating pushback from an unlikely source: hedge funds.
The industry’s main trade group is questioning whether the SEC fully considered the impact of significantly slashing the number of firms that have to disclose their holdings. The Managed Funds Association, in a comment letter posted Friday on the regulator’s website, urged the agency to do more analysis before moving forward.
“The proposing release underestimated the costs associated with the loss of publicly available information,” the Washington-based group said in a letter dated Sept. 29.
At issue is a July SEC proposal that would mark a dramatic overhaul of fund reporting rules that haven’t been updated in 40 years.