SEC Readopts Rule on Beneficial Ownership Reporting Requirements and Security-Based Swaps

June 8, 2011

The SEC readopted, without change, the relevant portions of existing rules that govern beneficial ownership determinations under Sections 13 and 16 of the Securities Exchange Act of 1934 (the “Exchange Act”).

The SEC acted to preserve the application of the existing beneficial ownership rules to persons who purchase or sell security-based swaps after the effective date of new Section 13(o) under the Exchange Act.  Congress added that provision when it enacted the Dodd-Frank Wall Street Reform and Consumer Protection Act.  Readoption of the relevant portions of Exchange Act Rules 13d-3 and 16a-1 confirms that following the July 16, 2011 statutory effective date of Section 13(o), persons who purchase or sell security-based swaps will remain within the scope of these rules to the same extent as they are now.

Click here to access the rule.


Exchange-Traded Funds (ETFs), Investment Companies, Regulatory