SEC Proposes Amendments to Exemptive Applications Procedures

October 23, 2019

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 process. The proposed amendments are intended to make the application process more efficient and transparent.

Expedited review would be available if the application is substantially identical to two other applications for which an order granting the relief has been issued within two years of the date of the application’s initial filing. Notice for an application filed under expedited review would be issued no later than 45 days from the date of filing unless applicants are not qualified under the rules or if the staff believes comments are necessary. In addition, a proposed new rule would establish an internal timeframe for staff to take action on applications outside of expedited review within 90 days of the initial filing and amendments thereto.

The proposal will have a 30-day comment period following its publication in the Federal Register.

Click here to access the proposed rule amendments.


Compliance, Investment Advisers, Investment Companies, Mutual Funds, Regulatory