The SEC provided temporary flexibility for certain registered and insurance company accounts to facilitate "short-term funding" during the COVID-19 pandemic.
According to the SEC Order providing exemptions from certain requirements of the Investment Company Act, the temporary relief allows:
registered open-end funds and insurance company separate accounts to borrow money from certain affiliates;
greater flexibility regarding existing interfund lending options and interfund lending arrangements for certain funds that would not otherwise enjoy exemptive relief; and
registered open-end funds to choose lending arrangements or borrowings that are outside of their "fundamental policies" (with prior board approval).
The SEC noted that a public notice will be provided detailing when the relief will terminate, which will be no earlier than June 30, 2020.
The SEC provided conditional compliance relief for registered transfer agents concerning (i) the clearance and settlement of securities transactions; and (ii) the safeguarding of securities and funds.
SEC staff issued no-action relief from Consolidated Audit Trail requirements in order to enable broker-dealers to implement COVID-19 contingency plans.
The SEC issued a waiver to make a CBOE Exchange, Inc. proposal that facilitates electronic options trading on the exchange effective immediately.
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