SEC Proposal on Investment Company Use of Derivatives – A Solution in Search of a Problem?

SEC Proposal on Investment Company Use of Derivatives – A Solution in Search of a Problem?

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In this article published by The Review of Securities & Commodities Regulation, Amy Doberman discusses the proposed Investment Company Act Rule 18f-4 and addresses that the new requirements will further restrict the ability of registered funds to invest in derivatives and increase the oversight burden on fund boards.

After 30 years of piecemeal guidance, the Commission has issued proposed Investment Company Act Rule 18f-4, which represents a comprehensive approach to the regulation of derivatives as “senior securities.” Read the full article.

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