{"id":1090,"date":"2020-10-08T13:38:27","date_gmt":"2020-10-08T13:38:27","guid":{"rendered":"http:\/\/localhost\/?p=1090"},"modified":"2021-02-09T18:41:29","modified_gmt":"2021-02-09T18:41:29","slug":"recent-sec-enforcement-raises-questions-for-bank-collective-trust-funds","status":"publish","type":"post","link":"https:\/\/bdia.pli.edu\/index.php\/2020\/10\/08\/recent-sec-enforcement-raises-questions-for-bank-collective-trust-funds\/","title":{"rendered":"Recent SEC enforcement raises questions for bank collective trust funds"},"content":{"rendered":"<p>The SEC, just a few days ago, announced an enforcement action against a trust company for failure to exercise substantial investment authority over their collective trust funds.<span style=\"font-size: 12px;\">\u00a0\u00a0<\/span>According to the SEC, because of this failure, the trust was not entitled rely on the Section 3(c)(11) under the Investment Company Act and was therefore operating unregistered investment companies. This SEC\u2019s action is curious to say the least; it is first statement by the SEC in recent memory which addresses Section 3(c)(11)\u2019s bank-maintained requirement. The action does not allege client harm and does not serve to advance any stated concern by the SEC regarding bank collective trust funds\u00a0 which are bank-regulated products. By bringing last week\u2019s case, the SEC raises the question of what constitutes &#8220;substantial investment authority&#8221; for purposes of the &#8220;maintained by a bank&#8221; requirement, but offers no sense of the SEC\u2019s expectations or where the SEC may be headed more generally with respect to bank collective trust funds.<\/p>\n<p><a href=\"https:\/\/us.eversheds-sutherland.com\/NewsCommentary\/Legal-Alerts\/235939\/Recent-SEC-enforcement-raises-questions-for-bank-collective-trust-funds?utm_source=vuture&amp;utm_medium=email&amp;utm_campaign=vuture-emails\">Read More Here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SEC, just a few days ago, announced an enforcement action against a trust company for failure to exercise substantial investment authority over their collective trust funds.\u00a0\u00a0According to the SEC, because of this failure, the trust was not entitled rely on the Section 3(c)(11) under the Investment Company Act and was therefore operating unregistered investment &hellip; <a href=\"https:\/\/bdia.pli.edu\/index.php\/2020\/10\/08\/recent-sec-enforcement-raises-questions-for-bank-collective-trust-funds\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">Recent SEC enforcement raises questions for bank collective trust funds<\/span> <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[23,24],"tags":[],"class_list":["post-1090","post","type-post","status-publish","format-standard","hentry","category-compliance","category-enforcement"],"aioseo_notices":[],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/posts\/1090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/comments?post=1090"}],"version-history":[{"count":0,"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/posts\/1090\/revisions"}],"wp:attachment":[{"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/media?parent=1090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/categories?post=1090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/tags?post=1090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}