Landmark Ruling: National Association of Private Fund Managers Secures Victory Against SEC in Fifth Circuit
New Orleans, LA – September 3, 2025 – In a significant development for the private fund industry, the United States Court of Appeals for the Fifth Circuit has today published its decision in the case of National Association of Private Fund Managers v. Securities and Exchange Commission. The ruling, issued on September 3, 2025, at 8:23 PM EST, marks a pivotal moment, with the Court finding in favor of the National Association of Private Fund Managers (NAPFM).
The case revolved around a rule promulgated by the Securities and Exchange Commission (SEC) that the NAPFM argued exceeded the Commission’s statutory authority and imposed undue burdens on private fund managers. The NAPFM, a prominent advocate for the private fund industry, contended that the SEC’s rule, which aimed to introduce new disclosure requirements and operational regulations, encroached upon areas not explicitly granted to the Commission by Congress.
In its detailed opinion, the Fifth Circuit Court of Appeals thoroughly examined the scope of the SEC’s rulemaking authority under the relevant securities laws. The Court’s decision appears to underscore a principle of jurisdictional limitation, suggesting that regulatory bodies must operate within the boundaries of the authority delegated to them by the legislature. This careful consideration by the appellate court is likely to have far-reaching implications for the regulatory landscape of private funds.
While the precise details of the SEC’s rule and the specific legal arguments are extensive, the outcome suggests that the Court agreed with the NAPFM’s assertion that the Commission had overstepped its mandate. This ruling could potentially lead to a reassessment of the SEC’s regulatory approach towards private funds and may necessitate adjustments to existing or future proposed rules.
This decision is being closely watched by industry professionals, investors, and policymakers alike. It represents a significant victory for the NAPFM and its members, potentially offering greater clarity and flexibility for private fund operations. The ruling could also signal a broader trend of judicial scrutiny concerning the scope of federal agency rulemaking.
The full text of the Fifth Circuit’s opinion in National Association of Private Fund Managers v. Securities and Exchange Commission is now available for public review on govinfo.gov under the case number USCOURTS-ca5-23-60626. Further analysis and commentary from legal experts and industry representatives are expected in the coming days as the implications of this important decision are fully understood.
23-60626 – Natl Assoc Priv Fund Mgr v. SEC
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govinfo.gov Court of Appeals forthe Fifth Circuit published ’23-60626 – Natl Assoc Priv Fund Mgr v. SEC’ at 2025-09-03 20:23. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.