SEC Sets Effective Date for New Requirements on Investment Company Names

The SEC set an effective date of December 11, 2023 for rule amendments that prevent investment companies from adopting names that may mislead investors. The date was published in the Federal Register.

The SEC adopted the amendments to Rule 35d-1 ("Investment company names") to (i) require that funds with an investment focus (e.g. related to "ESG") adopt a policy to invest at least 80 percent of the value of their assets in accordance with the investment focus that the fund’s name suggests, (ii) update the rule’s notice requirements and (iii) establish additional recordkeeping requirements.

Fund groups with net assets of $1 billion or more have 24 months to comply with the amendments, and fund groups with net assets of less than $1 billion have 30 months to comply.