Regulatory Alerts2022-06-17 | 2022-11742Added
Investment Company Names
The Securities and Exchange Commission proposes amendments to the Names Rule under the Investment Company Act of 1940 to enhance investor protection by clarifying requirements for funds whose names suggest specific investment focuses. The proposal mandates that such funds adopt policies to invest at least 80% of their assets in accordance with the suggested focus, while also introducing enhanced prospectus disclosure requirements for fund name terminology and new recordkeeping obligations. Additionally, the Commission seeks to modernize compliance by establishing reporting requirements on Form N-PORT and addressing the use of potentially misleading environmental, social, and governance (ESG) terminology in fund names.
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