SEC Clarifies Exchange Act Rule 16b-(3) for a Business Development Company

The SEC Division of Corporation Finance issued interpretive advice regarding the application of the exemptions provided by Securities Exchange Act Rule 16b-3 ("Transactions between an Issuer and Its Officers or Directors") to directors of an adviser to a business development company and to officers of the business development company.

Subject to the procedural requirements set out in the letter, such person would be eligible for the exemptions provided by Rule 16b-3.

The SEC emphasized that these views only apply to the specific representations made by this specific request for guidance.