Use of Derivatives by Investment Companies under the Investment Company Act of 1940 (Concept Release)

76 FR 55237 (SEC Release No. IC-29776)

September 7, 2011

The SEC issued a concept release to consider the use of derivatives by registered investment companies. Among other things, the release requests public comment on the use of derivatives in relation to the Investment Company Act's provisions on (i) leverage limitations, (ii) issuance of "senior securities"; (iii) diversification; and (iv) concentration. In addition, the SEC requested public comment on any other issues not directly addressed in the concept release relating to the use of derivatives by investment companies. Comments are due to the SEC by November 7, 2011.

For more information about this document, you may contact one of the following Cadwalader attorneys: Steven Lofchie; Maurine Bartlett; Dorothy Mehta; Andrew Lom.

Cross References

SEC Press Release No. 2011-175

Investment Company Act § 18