SEC Proposes New Exemptive Rule to Regulate Funds’ Use of Derivatives

December 11, 2015

At an open meeting of the U.S. Securities and Exchange Commission (SEC) today, the SEC by a three-to-one vote approved the proposal (Proposal) of new Rule 18f-4 under the Investment Company Act of 1940 (1940 Act) and amendments to certain proposed forms related to the use of derivatives by registered investment companies – open-end funds, closed-end funds, and exchange-traded funds – and business development companies (collectively, funds). This Proposal is the third of five significant SEC regulatory initiatives originally announced by SEC Chair Mary Jo White in December 2014.

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