News & Analysis as of

Proposed Rules Securities and Exchange Commission (SEC) Business Development Companies

SEC Compliance Consultants, Inc. (SEC³)

A New Era for Co-Investments?

The SEC just proposed major updates that could make life easier for BDCs, closed-end funds, and their advisers when it comes to co-investing. Under the proposed relief granted to FS Credit Opportunities Corp., the SEC is...more

Seward & Kissel LLP

SEC Easing Conditions for Co-Investment Relief for BDCs and Closed-End Funds

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On April 3, 2025, the U.S. Securities and Exchange Commission (“SEC”) issued a notice of proposed exemptive relief to FS Credit Opportunities Corp. and its affiliates (Applicants), introducing more flexible co-investment...more

Davis Wright Tremaine LLP

SEC Delays Proposed Cybersecurity Rules

According to its Spring 2023 rulemaking agenda, the U.S. Securities and Exchange Commission (SEC) has delayed issuance of two sets of cybersecurity requirements that previously were expected to be finalized in April 2023. The...more

Moore & Van Allen PLLC

The Devil Really is in the Details: The SEC Proposed Rule on Cybersecurity Risk Management for Investment Advisors, Registered...

Late last month the Securities and Exchange Commission (“SEC”) charged JP Morgan, UBS and Trade Station with violations of Regulation S-ID based on a range of  inadequacies in their identity theft red flag policies and...more

Holland & Knight LLP

SEC ESG-Rulemaking Wave Continues with Proposed Rule for Advisers and Funds

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In the SEC's latest environmental, social and governance (ESG) rulemaking salvo, the agency proposed two new ESG-focused rules aimed at the advisory and investment company space: 1) proposed amendments to the "Names Rule"...more

Mayer Brown Free Writings + Perspectives

US SEC Proposes Rules Regarding ESG for Certain Funds and Advisers

At an open meeting on May 25, 2022, the US Securities and Exchange Commission (“SEC” or “Commission”) approved two new proposals that will impact the fund and investment management industry. One of the proposals is directed...more

Latham & Watkins LLP

Analysis: SEC’s Proposed Cyber Rules for RIAs, RICs, and BDCs

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In another move related to strengthening its cybersecurity enforcement efforts, the SEC announced that it will nearly double the size of its cyber enforcement unit. On May 3, 2022, the SEC announced that it will allocate...more

Burr & Forman

SEC Proposes Cybersecurity Rule for Advisers, Investment Companies

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On February 9, the SEC proposed new cybersecurity risk management regulations for investment advisers, registered investment companies (funds), and business development companies....more

Sullivan & Worcester

SEC Proposes Modernized Shareholder Reports and Other Disclosures

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On August 5, 2020, the Securities and Exchange Commission (“SEC”) proposed rule and form amendments that would modernize the disclosure framework for mutual funds and exchange-traded funds (“ETFs”) to create a new layered...more

Eversheds Sutherland (US) LLP

SEC proposes amendments to AFFE and advertisements: What this means for BDCs and the potential for a return to indexes

On August 5, 2020, the Securities and Exchange Commission (SEC) announced proposed modifications (the Proposed Rule) to the disclosure framework for mutual funds and exchange-traded funds (ETFs) registered on Form N-1A...more

Proskauer Rose LLP

SEC Proposes New Valuation Rule for Registered Funds and BDCs

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On April 21, 2020, the Securities and Exchange Commission (the "SEC") proposed new Rule 2a-5 (the "proposed rule") under the Investment Company Act of 1940, as amended (the "1940 Act"). The proposed rule establishes...more

Goodwin

SEC Proposes New Rule to Change Regulatory Framework for Fund Boards in Making Good Faith Determinations of Fair Value

Goodwin on

On April 21, 2020, the U.S. Securities and Exchange Commission (the “SEC”) voted to propose new Rule 2a-5 (the “Proposed Rule”) under the Investment Company Act of 1940 (the “1940 Act”) that, if adopted, would establish a...more

Vedder Price

SEC Re-Proposes New Rule Governing Funds’ Use of Derivatives

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On November 25, 2019, the U.S. Securities and Exchange Commission (the “SEC” or the “Commission”) re-proposed a new exemptive rule under the Investment Company Act of 1940, as amended (the “1940 Act”)—Rule 18f-4 (the...more

Eversheds Sutherland (US) LLP

SEC proposes rule that would expand access to private BDCs 

On December 18, 2019, the Securities and Exchange Commission (SEC) issued a proposed rule – “Amending the ‘Accredited Investor’ Definition” (the Proposed Rule) – that would expand access to private funds for certain...more

Proskauer Rose LLP

SEC Re-Proposes Regulations Governing the Use of Derivatives and Other Transactions by Registered Funds and BDCs

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The Securities and Exchange Commission (the "SEC") recently proposed a revised version of new Rule 18f-4 (the "Proposed Rule") under the Investment Company Act of 1940, as amended (the "1940 Act"), which it originally...more

Faegre Drinker Biddle & Reath LLP

SEC Re-Proposes Rule on Funds’ Derivatives Use

On November 25, 2019, the Securities and Exchange Commission (SEC) re-proposed Rule 18f-4 (“Rule 18f-4”) under the Investment Company Act of 1940, as amended (“1940 Act”). Rule 18f-4, if adopted, would alter the SEC’s...more

Sullivan & Worcester

SEC Re-Proposes Investment Company Derivatives Rule under the Investment Company Act

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The U.S. Securities and Exchange Commission (the “SEC”) re-proposed on November 25, 2019 rules under the Investment Company Act of 1940 (the “1940 Act”) relating to, among other things, use by investment companies of...more

Herbert Smith Freehills Kramer

SEC proposes simplification of derivatives rules for closed-end, other funds

The SEC voted to propose a rule designed to enhance the regulation of the use of derivatives by registered investment companies, including closed-end funds, as well as mutual funds, ETFs and business development companies....more

BCLP

SEC Proposes to Modernize Derivative Regulations for Investment Funds

BCLP on

On November 25, 2019, the Securities and Exchange Commission voted to propose a new rule regarding the regulation of the use of derivatives by registered investment companies, including mutual funds, exchange-traded funds...more

Herbert Smith Freehills Kramer

SEC Proposes to Modernize Rules Covering the Use of Derivatives and Short Sales by Registered Funds and Business Development...

On Nov. 25, the Securities and Exchange Commission (SEC) voted 5-0 to propose or repropose new rules revamping the framework for permissible use of derivatives and short sales by investment companies (other than money market...more

Proskauer Rose LLP

SEC Proposes Expedited Exemptive Relief Process and SEC Staff Issues Guidance on Repurchase Offers by Non-Traded BDCs

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The Securities and Exchange Commission (the "Commission") and the staff of its Division of Investment Management (the "Staff") have recently taken two actions that may prove beneficial to registered funds and business...more

Eversheds Sutherland (US) LLP

Everybody “Test-the-Waters” - SEC Expands Communications Rule to All Issuers

On September 26, 2019, the Securities and Exchange Commission (SEC) announced that it has expanded the “testing-the-waters” exemption to all issuers. The new rule and related amendments under the Securities Act of 1933, as...more

Skadden, Arps, Slate, Meagher & Flom LLP

Investment Management Update - June 2019

In the inaugural issue of Investment Management Update, we summarize regulatory, litigation and industry developments from February 2019 to May 2019 impacting the investment management sector....more

Herbert Smith Freehills Kramer

SEC Proposes Streamlining Offering Rules for Closed-End Funds and BDCs While Also Proposing New Reporting Obligations

In March 2019, the SEC, at the direction of Congress, proposed rules (the “Proposed Rules”) to modify the registration, communications, and offering processes for business development companies (“BDCs”) and registered...more

K&L Gates LLP

Offering Reforms or Burdensome Regulations? It Depends!

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SEC Proposes Reforms for Registration Process of Closed-End Funds and Business Development Companies - On March 20, 2019, the Securities and Exchange Commission (“SEC”) proposed several rules (the “Proposed Rules”) that...more

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