President Trump Signs Bill Directing SEC to Expand Safe Harbor for Certain Investment Fund Research Reports

October 24, 2017

President Trump signed into law on October 6, 2017 the Fair Access to Investment Research Act of 2017. The Act directs the U.S. Securities and Exchange Commission (SEC) to amend Rule 139 under the Securities Act of 1933 (1933 Act) to expand the Rule’s safe harbor to include certain investment fund research reports that are published or distributed by broker-dealers. The amended Rule will expand the safe harbor for research reports that are not deemed to be “offers” for purposes of Section 5 of the 1933 Act, or prohibited activities for purposes of Rule 101 of Regulation M, to include the publication or distribution of research reports relating to “covered investment funds.” Covered investment funds include exchange-traded funds (ETFs), exchange-traded managed funds (ETMFs) and publicly traded commodity pools that invest primarily in commodities, currencies, or derivative instruments that reference commodities or currencies.

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