MFA recommends expansion of ‘fund of funds’ proposal to include private funds

By Rodney F. Tonkovic, J.D. A comment letter by the Managed Funds Association asks the SEC to include private funds in the scope of its proposed "fund of funds" rules. While the MFA supports the updating of the regulation of fund of fund arrangements, it believes that the proposed rule should also include private funds in the scope of Investment Company Act rule 12d1-4 so they may invest in the same manner and subject to the same conditions as registered funds. Funds of funds. On December 19, 2018, the Commission proposed a new rule and related amendments designed to streamline and enhance the regulatory framework for fund of funds arrangements. "Funds of funds" are created when a mutual fund or other type of fund invests in shares of another fund. The proposal, which would rescind Investment Company Act Rule 12d1-2 as well as a series of exemptive orders issued since the 1990s, would allow, under proposed Rule 12d1-4, a fund to acquire the shares of another…

Read more detail on Recent Securities Law posts –

This entry was posted in Securities Law and tagged , , , , , , . Bookmark the permalink.

Leave a Reply