What authority would they be claiming? Not the '33 or '34 Acts so probably some sort of fraud statute. Or maybe Federal Trade Commission false advertising, tee hee.
From Reuters, June 3:
Manhattan's top federal prosecutor said on Wednesday he and his staff are asking questions in the private asset marketplace about valuations, as concerns rise about opacity in those processes in private credit and private equity.Regarding "marks and transparency of marks, we can do a better job," U.S. Attorney for the Southern District of New York Jay Clayton told the Bloomberg Global Credit Forum.Scrutiny has intensified on the valuations asset managers place on securities that rarely trade, partly pushed by increasing efforts among investment firms and some governments to channel more retail investor money into private assets.Clayton said that in a market where multiple participants have the same asset marked at different levels, it was important to ask questions, "particularly if they're making fees."....
....MORE
Meanwhile, at the federal supermax prison in Colorado:
Guard: "What are you in for?"Inmate: "Truth in advertising to hedge funds."
Guard: "Oooh, sorry bro, you're never getting out. They'll find a way to keep you here forever"
