Securities and Exchange Commission
The Securities and Exchange Commission (the "Commission") is proposing to amend the rule under the Investment Company Act of 1940 that allows registered closed-end management investment companies and business development companies (collectively, "regulated closed-end funds") to make repurchase offers to shareholders at net asset value ("NAV") at periodic intervals pursuant to a fundamental policy ("interval funds"). The proposed amendments would increase flexibility in the rule's repurchase offer framework and modify the rule's liquidity management requirements. The proposal is designed to modernize the framework applicable to these funds by allowing them to better match the liquidity profile of the assets in which they invest, while continuing to provide the operational infrastructure and investor protection of the Investment Company Act of 1940. We also propose amending certain rules that would permit regulated closed-end funds to issue multiple share classes, consistent with routine exemptive relief provided to these funds, and to require certain related disclosure in funds' prospectuses. We further propose to require disclosures in all regulated closed-end fund shareholder reports, a legend in their prospectuses, and an increase in the dollar amount used for the prospectus expense example, to provide investors with information about fund expenses similar to that provided by registered open-end funds. As a result of these amendments for interval funds and multiple share class regulated closed-end funds, we propose to rescind existing related exemptive orders.
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Document Headings Document headings vary by document type but may contain the following: the agency or agencies that issued and signed a document the number of the CFR title and the number of each part the document amends, proposes to amend, or is directly related to the agency docket number / agency internal file number the RIN which identifies each regulatory action listed in the Unified Agenda of Federal Regulatory and Deregulatory Actions See the Document Drafting Handbook for more details. Securities and Exchange Commission 17 CFR Parts 239, 249, 270, and 274 [Release No. 33-11444; 34-106534; IC-36351; File No. S7-2026-34] RIN 3235-AN83 ( printed page 63388) AGENCY: Securities and Exchange Commission. ACTION: Proposed rule. SUMMARY: The Securities and Exchange Commission (the “Commission”) is proposing to amend the rule under the Investment Company Act of 1940 that allows registered closed-end management investment companies and business development companies (collectively, “regulated closed-end funds”) to make repurchase offers to shareholders at net asset value (“NAV”) at periodic intervals pursuant to a fundamental policy (“interval funds”). The proposed amendments would increase flexibility in the rule's repurchase offer framework and modify the rule's liquidity management requirements. The proposal is designed to modernize the framework applicable to these funds by allowing them to better match the liquidity profile of the assets in which they invest, while continuing to provide the operational infrastructure and investor protection of the Investment Company Act of 1940. We also propose amending certain rules that would permit regulated closed-end funds to issue multiple share classes, consistent with routine exemptive relief provided to these funds, and to require certain related disclosure in funds' prospectuses. We further propose to require disclosures in all regulated closed-end fund shareholder reports,…
Other Federal Register documents from the same docket.
Citation: 91 FR 63388
