The SEC issued a concept release requesting public comment on issues related to the use of derivatives by registered management investment companies and companies that have elected to be treated as business development companies (“BDCs”) under the Investment Company Act of 1940 (collectively, “funds”). The release is part of a review being conducted by the SEC and its staff to determine whether the regulatory framework, as it applies to funds’ use of derivatives, continues to “fulfill the purposes and policies underlying the Act and is consistent with investor protection.” The review may ultimately result in regulatory initiatives. The concept release focuses on the following topics:
The concept release notes that the SEC may consider other significant derivatives-related issues under the Act, such as those related to disclosure, at a later date. Comments on the concept release may be submitted no later than 60 days after its publication in the Federal Register.
For more information about the contents of this alert, please contact:
Elizabeth Shea Fries
Consumer Financial Services
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