January 16, 2020
SEC Proposes to Modernize Auditor Independence Rules
On December 30, 2019, the SEC proposed amendments to codify certain staff consultations and modernize certain aspects of its auditor independence regulatory framework (Proposed Amendments). The Proposed Amendments are intended to eliminate non-substantive rule breaches and unnecessary reviews by audit committees of non-substantive matters (i.e., relationships and services that would…
January 8, 2020
Non-Transparent ETF Sponsors Request Additional Relief
Since the SEC issued orders to grant exemptive relief requested in applications filed by Blue Tractor Group, LLC, Fidelity Management & Research Company, Natixis Advisors, L.P., and T. Rowe Price Associates, Inc. to launch a type of non-transparent exchange-traded fund (NT ETF) that follows a proxy portfolio model on December…
December 23, 2019
SEC Grants Exemptive Applications of Additional Non-Transparent ETF Sponsors
On December 10, 2019, the SEC issued orders to grant exemptive relief requested in applications filed by Blue Tractor Group, LLC, Fidelity Management & Research Company, Natixis Advisors, L.P., and T. Rowe Price Associates, Inc. to launch a type of non-transparent exchange-traded fund (NT ETF) that follows a proxy portfolio…
November 18, 2019
SEC’s Office of Compliance Inspections and Examinations Issues Risk Alert to Provide Observations from Examinations of Investment Companies and Observations from Money Market Fund and Target Date Fund Examination Initiatives
On November 7, 2019, the staff of the SEC’s Office of Compliance Inspections and Examinations (staff) issued a risk alert (Risk Alert) on the most frequently cited deficiencies and weaknesses that the staff has observed in recent examinations of registered investment companies. The Risk Alert also provides staff observations from national examination initiatives relating to money market funds and target date funds.
November 8, 2019
SEC Proposes Updates to Filing Fee Disclosure and Payment Methods
On October 24, 2019, the SEC issued a release proposing amendments to various rules and forms under the 1933 Act, 1934 Act and 1940 Act (Release) applicable to investment companies registered under the 1940 Act (funds). The amendments would, among other things, require filing fee disclosures under Forms N-2, N-5…
October 24, 2019
Compliance and Effective Dates Set for New Exchange-Traded Funds Rule
On October 24, 2019, the SEC’s adopting release (Release) for Rule 6c-11 (Rule) under the Investment Company Act of 1940, as amended (1940 Act), to modernize the regulatory framework for most exchange-traded funds (ETFs) was published in the Federal Register, which means that the various compliance and effective dates for…
October 23, 2019
SEC Staff Issues Frequently Asked Questions Regarding Disclosure of Certain Financial Conflicts Related to Investment Adviser Compensation
On October 18, 2019, the SEC staff issued frequently asked questions (FAQ) about required disclosures of conflicts related to compensation advisers receive, such as 12b-1 fees and revenue sharing, for recommending certain investment products. In the FAQ, the staff of the Division of Investment Management discusses…
October 23, 2019
SEC Proposes Amendments to Exemptive Applications Procedures
On October 18, 2019, the SEC proposed rule amendments to establish an expedited review procedure for exemptive applications under the Investment Company Act of 1940 that are substantially identical to recent precedent, as well as a new informal internal procedure for applications that would not qualify for the new expedited…
October 21, 2019
SEC Staff Publishes Responses to Inquiries Regarding Business Development Companies and Section 61(a) of the Investment Company Act of 1940
On October 18, 2019, the SEC staff (the “Staff”) published responses to interpretive questions received related to Section 61(a) of the Investment Company Act of 1940 (the “1940 Act”), which applies the leverage limitations under Section 18 of the 1940 Act to business development companies (“BDCs”). Section 61(a) of the…
October 8, 2019
Division of Investment Management Issues ADI on Performance and Fee Issues
On October 2, 2019, the Disclosure Review and Accounting Office (“DRAO”) of the SEC’s Division of Investment Management (the “Division”) issued Accounting and Disclosure Information (“ADI”) 2019-09 on “Performance and Fee Issues.” The ADI provides the DRAO staff’s observations from reviewing fund disclosure filings with the…