6 Jun 2025
📈SEC Proposes Exemption for Closed-End Funds from Annual Meetings
Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Exempt Closed-End Management Investment Companies Registered Under the Investment Company Act of 1940 That Are Listed as of or After May 20, 2025 From the Annual Meeting of Shareholders Requirement Set Forth in Exchange Rule 14.10(f)
Summary
The SEC is considering a new rule allowing Closed-End Funds listed from May 20, 2025, onward to be exempt from annual shareholder meetings, streamlining operations and potentially enhancing market participation. This change aims to protect shareholders while encouraging the formation of new funds by reducing regulatory burdens associated with costly annual meetings.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The SEC's proposed rule change exempts newly listed Closed-End Funds from annual shareholder meeting requirements, which can significantly reduce operational costs for these funds, directly impacting financial performance and governance flexibility. This regulatory shift may encourage more listings, stimulating market activity and creating new business opportunities.