The Securities and Exchange Commission voted to adopt a sweeping anti-fraud rule that targets money managers who deliberately mislead investors.The new rule, which was first proposed by the SEC in December, also has been expanded to include hedge funds.
The measure covers a wide range of fraud, and increases the regulator’s authority for enforcement activity against managers who defraud investors in “pooled” investments such as hedge funds.
The rule will take effect 30 days after publication in the Federal Register.
