SEC Tightens Rules on Investment Fund Names to Avoid Misleading Investors

SEC adopted amendments to Investment Company Act Names Rule to address misleading fund names.
Amendments require more funds to adopt 80% investment policy if name suggests focus.
Funds must review portfolio assets quarterly for compliance with 80% policy.
Enhanced prospectus disclosure required for terms used in fund names.
New reporting and recordkeeping requirements for funds on names compliance.

sec.gov

Relevant topic timeline:

8/23/2023

US SEC overhauls rules for $20 trillion private fund industry

The U.S. Securities and Exchange Commission (SEC) has implemented new rules aimed at increasing transparency and accountability in the private equity and hedge fund industry, requiring the issuance of quarterly fee and performance reports, disclosure of fee structures, and annual audits, while banning preferential treatment for certain investors.

8/23/2023

SEC.gov

The Securities and Exchange Commission has adopted rule amendments that narrow the exemption from national securities association registration, enhancing oversight of broker-dealers engaged in proprietary trading across markets.

8/23/2023

SEC makes biggest overhaul of $20T private equity, hedge fund...

The Securities and Exchange Commission voted to overhaul rules for private equity and hedge funds, requiring greater transparency and accountability, but didn't make it easier for investors to sue fund managers or ban arrangements that give certain investors preferential treatment.

8/23/2023

New rules require audits for private equity and hedge funds

The U.S. Securities and Exchange Commission has adopted new rules targeting private fund advisors, particularly those managing private equity and hedge funds, to increase transparency and protect investors by requiring more disclosures, annual financial statement audits, and quarterly performance statements.

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Posted 9/20/2023, 5:24:48 PM

SEC Tightens Rules on Investment Fund Names to Avoid Misleading Investors

SEC adopted amendments to Investment Company Act Names Rule to address misleading fund names.
Amendments require more funds to adopt 80% investment policy if name suggests focus.
Funds must review portfolio assets quarterly for compliance with 80% policy.
Enhanced prospectus disclosure required for terms used in fund names.
New reporting and recordkeeping requirements for funds on names compliance.

sec.gov

Relevant topic timeline:

8/23/2023

US SEC overhauls rules for $20 trillion private fund industry

8/23/2023

SEC.gov

8/23/2023

SEC makes biggest overhaul of $20T private equity, hedge fund...

8/23/2023

New rules require audits for private equity and hedge funds