An SEC final rule on exemptions for mutual funds, exchange-traded funds, registered closed-end funds and business development companies when entering into derivatives transactions was published in the Federal Register.
SEC Division of Investment Management Director Dalia Blass said the Division will be making recommendations on outstanding proposals concerning (i) fund of funds arrangements, (ii) funds' use of derivatives, (iii) fund valuation practices and (iv) investment adviser solicitation and advertising. She also highlighted initiatives to enhance public access to private markets.
An investment adviser settled SEC charges for failing to disclose that: (i) the adviser's parent company paid a teachers' union-owned for-profit entity to promote the adviser's services to teachers; and (ii) the adviser received financial benefits as a direct result of investment recommendations that were more expensive than other options available to clients.
Three investment advisers settled separate charges with the SEC after self-reporting certain failures to disclose conflicts of interest that were the focus of the SEC Enforcement Division's Share Class Selection Disclosure Initiative.
SEC Division of Investment Management Director Dalia Blass requested industry engagement on (i) fund innovation, (ii) the SEC's derivatives proposal, (iii) affiliated securities lending and (iv) the fund disclosure regime.