18 Apr 2025
📈Updates on SEC Rule 12d3-1
Proposed Collection; Comment Request; Extension: Rule 12d3-1
Summary
The Securities and Exchange Commission is proposing a collection of information regarding Rule 12d3-1 under the Investment Company Act of 1940. This rule allows funds to invest a small percentage of their assets in securities from businesses involved in securities-related activities, while requiring amendments to subadvisory contracts to avoid conflicts of interest, enhancing operational transparency and compliance requirements.
Agencies
- Securities and Exchange Commission
Business Impact
$$ - Med
The text outlines regulatory updates regarding Rule 12d3-1, which could affect how funds invest in securities related to investment advisers. The requirement for contract modifications could impact operational processes and compliance costs for fund managers.