SEC Issues Guidance Regarding Mixed and Shared Funding Orders
The SEC Division of Investment Management issued guidance that is intended to clarify regulations and obligations regarding mixed and shared funding orders.
Specifically, the guidance addresses whether (i) a mutual fund that offers its shares as an investment option under a variable life and/or variable annuity contract is required to obtain a so-called "mixed and shared funding" SEC order prior to making such an offer, and (ii) a mutual fund that has obtained a mixed and shared funding order previously must, under all circumstances, comply with the terms and conditions of that order.