June 11, 2019

SEC Approves Precidian’s Non-Transparent, Active ETFs

On May 20, 2019, the Securities and Exchange Commission (SEC) granted exemptive relief under the Investment Company Act of 1940 for Precidian Investments’ non-transparent actively managed exchange-traded funds (ETFs). The exemptive relief permits registered open-end investment companies that are actively managed ETFs to operate without being subject to the current…

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May 30, 2019

SEC’s Division of Corporation Finance Provides Guidance to Broker-Dealers on Delivery of Mutual Fund Prospectuses to Clients of Discretionary Investment Advisers

On April 11, 2019, the Securities and Exchange Commission’s Division of Corporation Finance (Division) provided guidance to broker-dealers with respect to delivery of mutual fund prospectuses to clients of discretionary investment advisers. The Division stated that, for purposes of Section 5(b)(2) of the Securities Act of 1933, it is of…

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April 24, 2019

SEC Staff Issues Liquidity FAQ on Extended Holiday Closures

On April 10, 2019, the SEC staff (Staff) prepared new FAQ #34 under its Investment Company Liquidity Risk Management Programs Frequently Asked Questions to address the treatment of securities that trade in markets closed for extended holidays (e.g., Chinese New Year) with respect to requirements under Rule 22e-4 under the…

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April 24, 2019

SEC Staff Grants No-Action Relief Under Section 15(a) of the 1940 Act

On April 15, 2019, the SEC staff (Staff) granted no-action relief  under Section 15(a) of the Investment Company Act of 1940 (the “1940 Act”) to allow investment advisers (Advisers) to certain series (Funds) of the Quaker Investment Trust (the “Trust”) to continue to serve as investment…

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April 24, 2019

SEC’s Office of Compliance Inspections and Examinations Issues Risk Alert Highlighting Compliance Issues Related to Regulation S-P

On April 16, 2019, the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations issued a risk alert on compliance issues related to Regulation S-P. Seward & Kissel has recently prepared a memorandum “Investment Adviser and Broker-Dealer Compliance Issues Related to…

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April 8, 2019

SEC Adopts Amendments to Modernize and Simplify Disclosure for Investment Companies and Investment Advisers

On March 20, 2019, the Securities and Exchange Commission ("SEC") adopted amendments to modernize and simplify certain disclosure requirements in Regulation S-K and related rules and forms, as mandated by the 2015 Fixing America's Surface Transportation Act.

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March 4, 2019

SEC Modifies Timing Requirements for Filing Non-Public Form N-PORT Data in Light of Cybersecurity Risk Concerns

On February 27, 2019, the Securities and Exchange Commission (SEC) modified the submission deadlines for funds filing non-public monthly reports on Form N-PORT. Instead of filing non-public monthly reports with the SEC within 30 days after each month-end, funds will be required to maintain the relevant information in their records and file all three monthly reports with the SEC no later than 60 days after the end of each fiscal quarter. The monthly reports on Form N-PORT for the first and second months of the fiscal quarter will remain non-public, while the monthly report for the third month will become publicly available upon filing (with the exception of certain specific data items). The change does not affect the amount or timing of the information made available to the public.

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March 4, 2019

SEC Staff Grants No-Action Relief Regarding Board In-Person Voting Requirements

On February 28, 2019, the staff of the Securities and Exchange Commission’s (SEC) Division of Investment Management (Staff) issued a no-action letter regarding in-person voting requirements for fund boards with respect to certain actions, such as renewing or approving an investment advisory contract or principal underwriting contract, approving an interim advisory contract, selecting an independent public accountant, or renewing or approving a fund’s 12b-1 distribution plan (“Required Approvals”). In this regard, the Staff agreed not to recommend enforcement action to the SEC for violations of Sections 12(b), 15(c) and 32(a) of the Investment Company Act of 1940, as amended (“1940 Act”), or Rules 12b-1 or 15a-4(b)(2) under the 1940 Act, if fund boards do not adhere to certain in-person voting requirements in certain circumstances.

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February 15, 2019

SEC’s Division of Investment Management Issues Information Update Regarding Updated Forms

On February 1, 2019, the staff of the SEC’s Division of Investment Management issued an Information Update to indicate that several forms (e.g., Forms N-1A, N-2, N-14 and N-CSR) on the SEC website have been updated to reflect amendments recently adopted by the SEC.

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February 15, 2019

Former SEC Economists File Comment Letter Criticizing Economic Analysis Underlying Regulation Best Interest Rule Proposal

On February 6, 2019, a group of 11 former SEC senior economists filed a comment letter criticizing the economic analysis underlying the SEC’s Regulation Best Interest Rule Proposal, which consists of three related rules aimed at reforming the way registered investment advisers and broker-dealers service retail customers.

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