Regulatory Alerts2022-05-25
Investment Company Names
The Securities and Exchange Commission proposes amendments to Rule 35d-1 under the Investment Company Act of 1940 to prevent misleading fund names from deceiving investors. The rule mandates that funds with names suggesting a specific investment focus adopt an 80% investment policy, ensuring at least eighty percent of their assets align with the indicated strategy. Furthermore, the proposal modernizes prospectus disclosure standards for fund terminology, establishes comprehensive recordkeeping mandates, and introduces Form N-PORT reporting to verify ongoing compliance.
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