Last week the U.S. Securities and Exchange Commission adopted amendments to rule 35d-1 under the Investment Company Act of 1940, commonly known as the “Names Rule.” Our Investment Funds Team outlines these amendments and related implications for the funds industry.

- The SEC stated that the amendments “modernize and enhance” names-related regulation

- The amendments expand the current 80% investment policy requirement to include any fund name suggesting a fund has “particular characteristics,” including fund names suggesting an investment theme or an ESG focus

- The Names Rule amendments become effective 60 days after publication

- Funds with assets over $1 billion or more have 24 months to comply; funds with assets less than $1 billion have 30 months to comply