Hedge Fund Blasts Settlement With SEC After ‘Gag Rule’ Lifted The Securities and Exchange Commission's decision to lift its decades old "gag rule" on hedge fund settlements has sent shockwaves through the industry, sparking criticism from some of its largest players.
The move allows hedge funds to speak freely about their settlement agreements with regulators for the first time since 2003.
Regulatory Scrutiny: How the SEC’s Actions Affect Hedge Funds The "gag rule," officially known as Rule 6e 2, prohibited hedge funds from disclosing settlement agreements or details related to regulatory actions.