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SEC considers ban on PE client charges for legal costs

Private equity firms could be prevented from passing on legal costs to investors under new rules being considered by the US Securities & Exchange Commission (SEC), according to a report by The Wall Street Journal.

The move is aimed partly at addressing investor concerns that they could end up paying for wrongdoing on the part of fund managers.

Under the proposed new rules, managers would be prohibited from passing on the costs of regulatory examinations, investigations, or SEC settlements and fines.

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