SEC Extends "Names Rule" Compliance Deadlines

The SEC issued "a six-month extension" on the compliance dates for rule amendments on investment company names "that are likely to mislead investors about the investment company's investments and risks." 

As previously covered, the SEC adopted amendments to Rule 35d-1 ("Investment company names") to (i) require that funds with an investment focus (e.g. related to "ESG") "adopt a policy to invest at least 80 percent of the value of their assets in accordance with the investment focus that the fund's name suggests," (ii) update "the rule's notice requirements" and (iii) establish additional "recordkeeping requirements."

The extension pushes the compliance deadlines for larger fund groups from December 11, 2025 to June 11, 2026, and for smaller fund groups from June 11, 2026 to December 11, 2026.