May 4, 2020

Major Exchanges for ETFs Receive Approval for Generic Listing Standards for ETFs that Can Rely on Rule 6c-11

Cboe BZX Exchange, Inc. (Cboe), The Nasdaq Stock Market LLC (NASDAQ) and NYSE Arca, Inc. (NYSE) received approval from the SEC’s Division of Trading and Markets (Division) to adopt rules that establish generic listing standards to permit the listing and trading of ETFs that can rely on Rule 6c-11 under…

Continue reading...

May 4, 2020

SEC Fines Fund Adviser for Overvaluing its Securities and Misleading Performance Disclosures

On April 28, 2020, the SEC fined a fund’s adviser in a consent order (Order) for the adviser’s conduct involving the fund’s overvaluation of its securities and the adviser’s misleading statements about the fund’s performance in shareholder communications. The fund primarily invested in non-agency mortgage-backed securities (NA MBS) and, during…

Continue reading...

April 24, 2020

SEC Adopts Rule Clarifying Fair Value Determinations

On April 21, 2020, the SEC proposed Rule 2a-5 under the 1940 Act (Rule) that specifies what is required for a fund (or a business development company) to determine the fair value in good faith of the fund’s investments that do not have readily available market quotations for purposes of Section 2(a)(41) of the 1940 Act and Rule 2a-4 under the 1940 Act.

Continue reading...

April 16, 2020

SEC’s Division of Investment Management Issues Statement on Importance of Delivering Timely and Material Information to Investment Company Investors

On April 14, 2020, the SEC’s Division of Investment Management (Division) issued a statement to underscore the importance of delivering required information to investment company investors on a timely basis (Statement).  The Statement emphasizes that investment companies are subject to Section 10(a)(3) of the 1933 Act, which requires any prospectus used…

Continue reading...

April 16, 2020

SEC’s Division of Investment Management Issues Information Update on Exemptive Application Hearing Requests

The SEC’s Division of Investment Management (Division) recently issued an Information Update (Update) regarding changes to the SEC’s procedures for granting exemptive applications filed under the 1940 Act or the Advisers Act.  Before issuing an exemptive order, the SEC provides a public notice summarizing the exemptive relief that will be…

Continue reading...

April 9, 2020

SEC Provides Temporary Relief to Business Development Companies Related to COVID-19

On April 8, 2020, the SEC issued a temporary exemptive order that provides specific, technical relief to BDCs with respect to certain senior securities and joint transaction restrictions and prohibitions under the 1940 Act (Order).  The Order permits BDCs to issue senior securities subject to a modified asset coverage calculation…

Continue reading...

April 2, 2020

Two Semi-Transparent ETFs Listed for Trading on a U.S. Exchange

Today, two semi-transparent ETFs following the Precidian ActiveShares model were listed for trading on a U.S. exchange. American Century Focused Large Cap Value ETF (FLV) and American Century Focused Dynamic Growth ETF (FDG), which are both listed on the Cboe BZX Exchange, Inc. (Cboe), are the first ETFs…

Continue reading...

April 1, 2020

SEC Staff Grants Temporary Relief to Support Open-End Funds

On March 26, 2020, the SEC staff (Staff) issued a no-action letter to the Investment Company Institute (ICI Letter) that provides temporary relief to registered open-end investment companies, other than exchange-traded funds and money market funds (open-end funds), and affiliated persons of such open-end funds (and affiliated persons of such affiliated persons) (Affiliates) from certain restrictions in Section 17(a) of the 1940 Act. Subject to conditions that are specified in the ICI Letter, the Staff will permit Affiliates to rely on Rule 17a-9 to purchase an affiliated open-end fund’s debt securities to enhance such fund’s liquidity or to fund shareholder redemptions in light of the short-term dislocation in the fixed income markets caused by the outbreak of COVID-19.

Continue reading...

March 26, 2020

SEC Provides Temporary Additional Borrowing Flexibility to Registered Investment Companies Affected by Coronavirus

On March 23, 2020, the SEC issued an order (1940 Act Borrowing Order) providing for temporary additional borrowing flexibility to certain registered investment companies (funds) affected by the outbreak of COVID-19 (Coronavirus).  The 1940 Act Borrowing Order provides exemptions from certain requirements of the Investment Company Act of 1940 (1940…

Continue reading...

March 26, 2020

SEC Provides Revised Relief to Assist Registered Funds Affected by the Coronavirus

On March 25, 2020, the SEC issued a revised order superseding a prior order from March 13, 2020 providing relief from certain provisions of the 1940 Act for registered investment companies (funds) whose operations may be affected by the coronavirus (1940 Act Order). The 1940 Act Order addresses: (i) the in-person…

Continue reading...

Menu