{"id":1359,"date":"2023-10-03T15:03:08","date_gmt":"2023-10-03T15:03:08","guid":{"rendered":"http:\/\/localhost\/?p=1359"},"modified":"2023-10-03T15:03:08","modified_gmt":"2023-10-03T15:03:08","slug":"sec-expands-the-names-rule","status":"publish","type":"post","link":"https:\/\/bdia.pli.edu\/index.php\/2023\/10\/03\/sec-expands-the-names-rule\/","title":{"rendered":"SEC expands the Names Rule"},"content":{"rendered":"<p>On September 20, 2023, the US Securities and Exchange Commission (SEC) voted by a 4-1 margin to adopt amendments to the fund \u201cNames Rule\u201d (Rule 35d-1) under the Investment Company Act of 1940. The amendments greatly expand the scope of the rule, but relax some of the compliance requirements that were originally proposed.<\/p>\n<ul>\n<li>Consistent with the proposal, the final amendments expand the scope of the rule to require funds with names that suggest a focus in investments that have, or issuers that have, \u201cparticular characteristics\u201d to adopt an 80% investment policy.<\/li>\n<li>The final amendments retain the rule\u2019s original language requiring funds to comply with their 80% policies \u201cunder normal circumstances\u201d and \u201cat the time of investment,\u201d but add a requirement that funds must review compliance with their 80% policies no less frequently than quarterly, in lieu of the continuous monitoring that was proposed.<\/li>\n<\/ul>\n<p>In a departure from the proposal, the final amendments do not require unlisted closed-end funds and BDCs to adopt their 80% policies as fundamental policies, rather, the amended rule states that such funds may not change their policies without a majority shareholder vote, unless the fund conducts a tender offer prior to the change, provides notice of the change prior to the tender offer, shares are repurchased at net asset value, and the tender offer is not oversubscribed.<\/p>\n<p><a href=\"https:\/\/us.eversheds-sutherland.com\/NewsCommentary\/Legal-Alerts\/261907\/SEC-expands-the-Names-Rule?utm_source=vuture&amp;utm_medium=email&amp;utm_campaign=vuture-emails\">Read more here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On September 20, 2023, the US Securities and Exchange Commission (SEC) voted by a 4-1 margin to adopt amendments to the fund \u201cNames Rule\u201d (Rule 35d-1) under the Investment Company Act of 1940. The amendments greatly expand the scope of the rule, but relax some of the compliance requirements that were originally proposed. Consistent with &hellip; <a href=\"https:\/\/bdia.pli.edu\/index.php\/2023\/10\/03\/sec-expands-the-names-rule\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">SEC expands the Names Rule<\/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":[23,21,22],"tags":[],"class_list":["post-1359","post","type-post","status-publish","format-standard","hentry","category-compliance","category-regulatory","category-standard-of-care"],"aioseo_notices":[],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/posts\/1359","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=1359"}],"version-history":[{"count":0,"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/posts\/1359\/revisions"}],"wp:attachment":[{"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/media?parent=1359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/categories?post=1359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bdia.pli.edu\/index.php\/wp-json\/wp\/v2\/tags?post=1359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}