Securities and Exchange Commission chair Mary Jo White has accused hedge funds and private equity firms of charging investors bogus fees.
Bloomberg reported that White told lawmakers Wednesday at a House Financial Services Committee hearing on increasing the SEC’s 2015 budget that more than half of about 400 private-equity firms examined by SEC staff inflate fees and expenses charged to companies in which they hold stakes. White also accused private funds of mis-assigning fees and expenses to companies that they have stakes in.
White added that the “funding [the SEC is] seeking is fully justified by [the] existing and growing responsibilities to investors, companies and the markets,” however White could not disclose when the agency would issue recommendations for new rules.
The agency’s budget has increased 80% in the last decade; White is asking for a $1.7 billion spending plan for the SEC for 2015.