While AI hit employment levels among the tech giants with thousands of job losses, the AI “safety first” policy is resonating in the regulated investment company sector. The Securities and Exchange Commission (SEC) has been keeping a close eye on the industry, particularly in light of recent advancements in technology and the potential risks associated with artificial intelligence.
Extending its focus on the investment industry's marketing and advertising to retail investors, the Securities and Exchange Commission on February 13, 2024, announced amendments to the Names Rule under the Investment Company Act of 1940. This move is aimed at enhancing transparency and accountability within the sector, ensuring that investors have access to accurate and up-to-date information about the companies in which they are investing.
Earlier this year, the US Congress passed the Corporate Transparency Act (CTA). The CTA will require thousands of privately held US investment companies to disclose key information about their ownership and control structures, in an effort to combat money laundering and terrorist financing.
The staff of the Division of Investment Management (the “Staff”) has issued a FAQ pertaining to the rule and form amendments adopted by the SEC. This FAQ provides guidance to regulated investment companies on how to comply with the new requirements and ensure that they are operating within the bounds of the law.
Securities and Exchange Commission (SEC) amends Names Rule under Investment Company Act of 1940, requiring impacted Funds to implement an 80-character limit on their names. This change is designed to streamline and standardize the naming conventions within the industry, making it easier for investors to identify and compare different investment opportunities.
On February 13, 2024, FinCEN proposed a long-awaited rule to combat illicit finance and national security threats in the asset management sector. This rule will have implications for regulated investment companies, as they will be required to conduct enhanced due diligence on their clients and report any suspicious activities to the authorities.
And, though it originated in the PRIIPS directive, this is a distinctly British issue due to the unique way our investment companies are structured. The UK government is closely monitoring developments in the regulated investment company sector and is committed to ensuring that the industry operates in a transparent and accountable manner.
New York proposed regulations would provide guidance on how asset management corporations should source their management or advisory fees. This move is aimed at increasing transparency and accountability within the industry, ensuring that investors are fully informed about the costs associated with their investments.
EVANSTON, Ill., Feb. 23, 2024 (GLOBE NEWSWIRE) -- Fidus Investment Corporation (NASDAQ: FDUS) (“Fidus” or the “Company”) today announced its support for the SEC's amendments to the Names Rule under the Investment Company Act of 1940. The Company believes that these changes will enhance transparency and accountability within the industry, benefiting both investors and companies alike.
