Compliance and Effective Dates Set for Final Rule and Related Amendments for Fund-of-Funds Arrangements

On November 19, 2020, the release reflecting the SEC’s adoption of Rule 12d1-4 (FoF Rule) under the 1940 Act and related amendments designed to implement a regulatory framework for investments by registered investment companies and business development companies (BDCs) (collectively, funds) in underlying funds was published in the Federal Register, which means that the various compliance and effective dates for the FoF Rule and related actions are now established. The release reflecting the SEC’s adoption of the amendments also rescinds Rule 12d1-2 (which applies to affiliated fund-of-funds arrangements) and prior exemptive relief that is covered by the FoF Rule and amends Rule 12d1-1 under the 1940 Act relating to fund-of-funds investments in money market funds.

The relevant compliance and effective dates are summarized below:

  • Effective Date of FoF Rule and Amendments to Rule 12d1-1: January 19, 2021
  • Effective Date of Rescission of Rule 12d1-2: January 19, 2022
  • Effective Date of Rescission of Exemptive Orders Granting Relief Covered by the FoF Rule: January 19, 2022
  • Compliance Date for Form N-CEN Amendments: January 19, 2022

This Seward & Kissel client memorandum discusses the FoF Rule and other amendments included in the Adopting Release in more detail:

The adopting release containing the various compliance and effective dates is available here:

The opinions expressed are those of the author(s) and do not necessarily reflect the views of the firm or its clients, or any of its or their respective affiliates. This article is for general information purposes and is not intended to be and should not be taken as legal advice.