Whether SEC pursues private fund advisers’ appeal could depend on agency’s broader agenda, securities lawyers say

The U.S. Securities and Exchange Commission must carefully weigh its legal strategy following a federal appeals court ruling last week that struck down the SEC’s regulation of private fund advisers as being au- beyond the agency’s statutory authority, securities lawyers said this week, citing the SEC’s broader agenda.

“The SEC is going to have to think very carefully about its next steps, because the court’s decision has significant implications for the SEC’s regulatory authority, and it extends beyond this one rule,” said Eric Diamond, partner of Sullivan & Cromwell. “Many existing SEC rules, and a number of rules proposed by (SEC Chairman Gary) Gensler, rely on the authority that was the subject of this court decision.”