SEC Staff Grants No-Action Relief Regarding Board Oversight of Affiliated Transactions

October 22, 2018

On October 12, 2018, the SEC staff issued a no-action letter regarding board oversight of affiliated transactions. The staff agreed not to recommend enforcement action to the SEC for violations of Sections 10(f), 17(a) or 17(e) of the Investment Company Act of 1940 if a fund’s board of directors receives, no less frequently than quarterly, a written representation from the chief compliance officer that transactions effected in reliance on Rules 10f-3 (relating to use of an affiliated underwriter), 17a-7 (relating to cross-trades between a registered fund and other adviser clients) or 17e-1 (relating to use of an affiliated broker) under the Act complied with the procedures adopted by the board pursuant to the relevant rule, instead of the board itself determining compliance.

Seward & Kissel LLP recently has prepared a memorandum “SEC Staff Grants No-Action Relief Regarding Board Oversight of Affiliated Transactions” that discusses the no-action relief in greater detail here.


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Compliance, Exchange-Traded Funds (ETFs), Investment Advisers, Investment Companies, Mutual Funds, Regulatory