Within the ever-evolving sphere of fund regulation, news of fresh amendments come as no surprise. Dated September 20, 2023, the US Securities and Exchange Commission (SEC) adopted amendments to Rule 35d-1 (also known as the ‘Names Rule’ or simply ‘Rule’) under the Investment Company Act of 1940 (the 1940 Act).
The Amendments implemented do not only change the playing field dramatically but also broaden the scope to which the Names Rule applies. Alongside these amendments, related form alterations were also made to accommodate the new regulatory changes that are in store.
Perhaps the most substantial alteration rests in the fact that the new scope of the Names Rule also encompasses names that suggest a registered investment company – or ‘fund’ – focuses on strategies with particular interests, an aspect previously overlooked in the rule’s earlier incarnation.
This development is indicative of an increased effort to make the fund market more transparent and accessible to its fiduciaries and other stakeholders, signaling the SEC’s commitment to maintaining trust and neatness in the regulation and operation of sizable investments.
To delve into the specifics of these new amendments, discuss their implications, or get more informed about the context that nurtures such changes, visit the comprehensive article on the matter by K&L Gates LLP.