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A step forward: SEC streamlines fund of funds arrangements for BDCs and closed-end funds

On October 7, 2020, the US Securities and Exchange Commission (the SEC) announced that it voted to adopt new rule 12d1-4 (Rule 12d1-4) under the 1940 Act and related amendments (the Final Rule) to streamline and enhance the...more

SEC opens door to statutory takeover defense for BDCs and closed-end funds

On May 27, 2020, the Staff (the Staff) of the Division of Investment Management (the Division) of the U.S. Securities and Exchange Commission (the SEC) issued a Staff Statement (the Staff Statement) reversing course on a...more

SEC guidance on reduced asset coverage for unlisted BDCs

On October 17, 2019, the staff of the Division of Investment Management (the “Staff”) of the US Securities and Exchange Commission issued guidance regarding an unlisted business development company’s (BDC) repurchase...more

SEC Staff states that IRS Form 1099-DIV cannot be used to satisfy the requirements of Section 19(a) of the Investment Company Act...

Section 19(a) of the Investment Company Act of 1940 (the 1940 Act) generally prohibits a business development company (BDC) or a registered investment company from making a distribution from any source other than its net...more

SEC Proposes Rule Related to Use of Derivatives and Financial Commitment Transactions by Regulated Funds

In December 2015, the Securities and Exchange Commission (the SEC) proposed a new Rule 18f-4 under the Investment Company Act of 1940 (the 1940 Act) that would, if adopted, affect the ability of mutual funds, exchange-traded...more

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