The SEC five-member panel voted 3-2 to implement several requirements for private funds, which manages more than $20 trillion in assets, to increase fairness and accountability|SEC|CC BY-NC-SA 2.0

To increase transparency, the Securities and Exchange Commission (SEC) announced yesterday it would adopt new oversight rules for private equity and hedge funds that would require disclosure of all quarterly fees and expenses to investors.

The panel voted 3-2 to implement several requirements for private funds, which manage more than $20 trillion in assets, to increase fairness and accountability.

The new set of rules looks to build on existing regulation and also requires private funds to undergo annual audits. The rules also restrict private funds from giving preferential treatment for better terms to some investors.