On September 20, 2023, in a 4-1 vote, the US Securities and Exchange Commission (SEC) adopted amendments (the Amendments) to the rule governing fund names, which impose new disclosure, compliance, reporting, and recordkeeping requirements on certain funds.
The Amendments1 expand the scope of Rule 35d-1 (the Names Rule) under the Investment Company Act of 1940 (the 1940 Act) to apply to any fund name that includes terms that suggest a focus in investments that have, or investments whose issuers have, “particular characteristics” and will require an 80% investment policy for such funds. The Amendments also include new compliance and reporting requirements regarding departures from 80% investment policies as well as substantial recordkeeping requirements.
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