Two Republicans in US House of Representatives questioned the wisdom of conducting compliance reviews of private equity fund advisers by federal securities regulators. Chairman Jeb Hensarling of the House Financial Services Committee and Chairman Scott Garrett of the Capital Markets Subcommittee sent a letter to Chair Mary Jo White of the Securities and Exchange Commission airing their concern.

The letter said, "For these advisers, the SEC examination process has proven to be burdensome, costly, inefficient and inflexible. Subjecting this set of advisers to the examination process does not appreciably further the goals of investor protection or financial stability."

The Republican Representatives also asked if there were any systemic risks given to the market by private equity funds. They said these funds required less attention from regulators because only sophisticated investors put money in them. Instead, the SEC should focus on advisers who give financial advice to less sophisticated investors.

Hensarling and Garret asked the SEC to give a written response by September 20.