News & Analysis as of

Investment Company Act of 1940

Proskauer - Regulatory & Compliance

Supreme Court to Decide Whether Section 47(b) Creates a Private Right of Action Under the Investment Company Act of 1940

On December 10, 2025, the United States Supreme Court will hear arguments in FS Credit Opportunities Corp. v. Saba Capital Master Fund, Ltd. to resolve a circuit split and determine whether there is a private right of action...more

Troutman Pepper Locke

Investment Management Update - Q3 2025

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This update covers legal developments and regulatory news for funds, their advisers, and industry participants for the quarter ended September 30. Please see full publication below for more information....more

Seward & Kissel LLP

SEC Issues Order for DFA Exemptive Application, Opening the Door to ETF Share Classes

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Who may be interested: Investment Companies; Investment Advisers; Boards of Directors - Quick Take: Following the notice of intent to grant relief in September, and having received no request for a public hearing into the...more

Vedder Price

SEC Staff Issues No-Action Relief Allowing State Trust Companies to Custody Crypto Assets for Registered Advisers and Funds

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On September 30, 2025, the staff of the SEC’s Division of Investment Management issued a no-action letter permitting registered investment advisers (RIAs) and registered investment companies, including business development...more

Vedder Price

SEC Set to Approve ETF Share Class Exemptive Relief

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On September 29, 2025, the SEC issued a notice of an amended application for an exemptive order to permit the applicant open-end management investment companies registered under the Investment Company Act of 1940 to offer a...more

Ropes & Gray LLP

Ropes & Gray’s Investment Management Update September – October 2025

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The following summarizes recent legal developments of note affecting the investment management industry: On September 30, 2025, the SEC Division of Investment Management (the “Division”) issued a no-action letter permitting...more

Venable LLP

ETF Share Classes in Maryland Corporations and Statutory Trusts

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The Securities and Exchange Commission recently issued a notice regarding intended exemptive relief (the “Notice”) that would permit an open-end management investment company (referred to herein as an “open-end fund”)...more

Foley & Lardner LLP

Digital Asset Treasury Companies: Structure and Regulation

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Digital Asset Treasury Companies (“DATCOs”) are a new class of public companies whose treasuries hold significant amounts of digital assets on their balance sheets. As distinguished from a public company that uses digital...more

Katten Muchin Rosenman LLP

Regulatory Compliance in Leveraged ETF Sales Practices

The Wall Street Journal reported last week that “Popular Leveraged Funds Shock Investors With Huge Losses.” It is important to understand how to offer such instruments consistent with regulatory expectations....more

Procopio, Cory, Hargreaves & Savitch LLP

Corporate Crypto Exposure Has Quietly Become Practical

Until recently, most public-company boards could dismiss corporate crypto exposure as too volatile, too complex, or too murky under U.S. accounting rules. That’s no longer true. Over the past year, regulators and...more

Ropes & Gray LLP

[Podcast] Fully Invested: Key Features and Developments in ‘34 Act Funds

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In this episode of Ropes & Gray’s Fully Invested podcast series, asset management partner Jessica Marlin and capital markets counsel Marc Rotter discuss the rise of ‘34 Act funds and what sets them apart in today’s investment...more

Katten Muchin Rosenman LLP

SEC's Strategic Shift to Expand Retail Investors' Access to Private Assets Provides New Opportunities: An Overview and Key...

The Trump administration, including the Securities and Exchange Commission (SEC) leadership, has ushered in a push to "democratize" access to alternative investments. Speaking at an Investor Advisory Committee meeting on...more

Seward & Kissel LLP

SEC Staff Issues No-Action Letter Addressing the Ability of State Trust Companies to Custody Crypto Assets

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Rule 206(4)-2 of the Investment Advisers Act of 1940, as amended (the “Advisers Act”) requires investment advisers registered under the Advisers Act (“Registered Advisers”) with custody of client “funds or securities” to...more

K&L Gates LLP

United States: No-Action Relief Issued for Crypto Custodied with State Trust Companies

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On 30 September 2025, the SEC’s Division of Investment Management (Staff) issued a no-action letter confirming that, with respect to the placement and maintenance of crypto assets, it would not recommend enforcement action if...more

Carlton Fields

SEC Staff Clarifies the Use of State Trust Companies as Crypto Custodians

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Just before the recent federal government shutdown, SEC staff issued a no-action letter providing some clarity as to who can serve as a permissible custodian under the Investment Company Act of 1940 and a “qualified...more

Ropes & Gray LLP

[Podcast] Fully Invested: The Rise of CITs – Why They’re a Compelling Path for Asset Managers Entering the 401(k) Plan and Retail...

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On this episode of Fully Invested, asset management partners, Eric Requenez and Jessica Reece, along with Josh Lichtenstein, a benefits partner and head of the ERISA fiduciary practice, discuss collective investment trusts...more

Orrick, Herrington & Sutcliffe LLP

SEC allows advisers and funds to use state trust companies for crypto custody under certain conditions

On September 30, the SEC Division of Investment Management issued a no-action letter, in response to a law firm’s request, stating it would not recommend any enforcement action against registered investment advisers or...more

Mayer Brown Free Writings + Perspectives

SEC Grants No-Action Relief to Registered Investment Advisers and Certain Registered Investment Companies to Treat a State Trust...

On September 30, 2025, the staff of the Division of Investment Management of the U.S. Securities and Exchange Commission granted no-action relief that allows, subject to numerous conditions: (i) investment advisers registered...more

Goodwin

Crypto and Commodity-Based ETPs Poised to Boom Following SEC’s Approval of Generic Listing Standards

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On September 17, 2025, the Securities and Exchange Commission (SEC) issued an order (the order) approving new generic listing standards for certain commodity-based exchange-traded products (ETPs), including those backed by...more

Morgan Lewis

Crypto Custody Breakthrough: SEC Staff Grants Relief for Registered Funds, Advisers

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The US Securities and Exchange Commission Division of Investment Management Staff issued a no-action letter permitting registered investment advisers and registered investment companies, including business development...more

Akin Gump Strauss Hauer & Feld LLP

SEC Allows State-Chartered Trust Companies to Serve as Crypto Custodians

On September 30, 2025, the staff of the U.S. Securities and Exchange Commission’s (the Commission or SEC) Division of Investment Management (the Staff) issued a no-action letter (NAL) stating that it would not recommend...more

Troutman Pepper Locke

SEC No-Action Letter: Expanding Custody Options for Crypto Assets With State Trust Companies

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On September 30, 2025, the Office of the Chief Counsel of the Securities and Exchange Commission’s (SEC) Division of Investment Management (the Division) issued a no-action response (the No-Action Letter) stating that it...more

K&L Gates LLP

Is the Industry Ready for an ETF Share Class?

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Introduction - On 29 September 2025, the US Securities and Exchange Commission (SEC) issued notice of an exemptive application filed by Dimensional Fund Advisors LP, et al. (Dimensional) seeking relief (Relief) to offer...more

Alston & Bird

SEC No-Action Letter on State Trust Companies and Crypto Custody

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Our Investment Funds and Securities Litigation teams explain how the Securities and Exchange Commission (SEC) has clarified the treatment of state trust companies as “banks” for custody of crypto assets, which may expand...more

Ropes & Gray LLP

SEC Issues Notice of Intent to Grant ETF Share Class Relief

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On September 29, 2025, the SEC issued a notice relating to an amended application filed by DFA Investment Dimensions Group Inc., et al., (“DFA”) for an exemptive order that would permit registered open-end funds to offer a...more

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