Regulators and the private equity industry are gearing up for a trial that could determine the government’s ability to set rules for buyout funds, with some business interests hoping the case could loosen regulators’ hold on Wall Street.

On 5 February, a three-judge panel for the Fifth Circuit Court of Appeals is set to hear oral arguments in a challenge private fund lobbyists mounted against tough new Securities and Exchange Commission rules. The provisions, finalised last August after months of contentious discussion, require private equity firms to tell investors much more about the fees they charge, and prohibit some activities the regulator considers unfair and conflicted.