Regulatory Alerts2020-01-24 | 2020-00040Added
Use of Derivatives by Registered Investment Companies and Business Development Companies; Required Due Diligence by Broker-Dealers and Registered Investment Advisers Regarding Retail Customers' Transactions in Certain Leveraged/Inverse Investment Vehicles
The Securities and Exchange Commission is re-proposing rule 18f-4 to establish a comprehensive regulatory framework for registered investment companies and business development companies regarding their use of derivatives. The Commission is also proposing new sales practices rules requiring broker-dealers and registered investment advisers to exercise due diligence when approving retail customer accounts for transactions in leveraged or inverse investment vehicles. Additionally, the proposal introduces amendments to fund reporting forms and rule 6c-11 to enhance oversight and allow certain leveraged/inverse ETFs to operate without individual exemptive orders.
Topics
Share