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
+1 617 570 1559
Consumer Financial Services
© 2016 Goodwin Procter LLP. All rights reserved. This informational piece, which may be considered advertising under the ethical rules of certain jurisdictions, is provided with the understanding that it does not constitute the rendering of legal advice or other professional advice by Goodwin Procter LLP, Goodwin Procter (UK) LLP or their attorneys. Prior results do not guarantee similar outcome.
Goodwin Procter LLP is a limited liability partnership which operates in the United States and has a principal law office located at 53 State Street, Boston, MA 02109. Goodwin Procter (UK) LLP is a separate limited liability partnership registered in England and Wales with registered number OC362294. Its registered office is at Tower 42, 25 Old Broad Street, London EC2N 1HQ. A list of the names of the members of Goodwin Procter (UK) LLP is available for inspection at the registered office. Goodwin Procter (UK) LLP is authorized and regulated by the Solicitors Regulation Authority.