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SEC Adopts Rule Modifying Fund Valuation Oversight Practices

On Dec. 3, the Securities and Exchange Commission (SEC) adopted a new rule (Rule 2a-5) under the Investment Company Act of 1940 (the 1940 Act) that establishes an updated regulatory framework for fund valuation oversight...more

SEC Updates ‘Fund of Funds’ Rules for Registered Investment Companies, Business Development Companies

The Securities and Exchange Commission (SEC) recently overhauled the rules applicable to “fund of funds” arrangements (where funds invest in other funds), rescinding many of the existing rules and exemptions and replacing...more

SEC Adopts New Rules Regarding Use of Derivatives by Registered Investment Companies and Business Development Companies

On Oct. 28, 2020, the Securities and Exchange Commission (SEC) voted to adopt a new rule (Rule 18f-4) and other related amendments, significantly altering the regulatory framework for derivatives use by registered investment...more

SEC Proposes New Valuation Framework for Funds and BDCs

Section 2(a)(41)(B) of the Investment Company Act of 1940 (1940 Act) requires that portfolio securities without readily available market quotations be valued at “fair value as determined in good faith by the board of...more

SEC Proposes New Valuation Practice Framework for Funds and BDCs

Last Monday, the Securities and Exchange Commission (SEC) voted to propose new Rule 2a-5 under the Investment Company Act of 1940 (1940 Act) establishing a framework for funds’ fair value determinations (Proposed Rule)....more

SEC Proposes to Modernize Rules Covering the Use of Derivatives and Short Sales by Registered Funds and Business Development...

On Nov. 25, the Securities and Exchange Commission (SEC) voted 5-0 to propose or repropose new rules revamping the framework for permissible use of derivatives and short sales by investment companies (other than money market...more

SEC Proposes Streamlining Offering Rules for Closed-End Funds and BDCs While Also Proposing New Reporting Obligations

In March 2019, the SEC, at the direction of Congress, proposed rules (the “Proposed Rules”) to modify the registration, communications, and offering processes for business development companies (“BDCs”) and registered...more

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