SEC Adopts New Rules and Amendments to Update the Approach to the Regulation of Registered Funds’ and BDCs’ Use of Derivatives and Other Transactions

The U.S. Securities and Exchange Commission on October 28, 2020 approved by a 3-2 vote a new rule and rule amendments (collectively, Final Rule) related to the use of derivatives and certain other transactions by registered investment companies (i.e., open-end funds other than money market funds (with a limited exception); exchange-traded funds; and closed-end funds) and business development companies (collectively, funds). The Final Rule includes: (1) new Rule 18f‑4 under the Investment...
By: Dechert LLP

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