The SEC's Spring 2018 regulatory flexibility agenda included a prospective rule titled "Use of Derivatives by Registered Investment Companies and Business Development Companies," after a similar proposed rule in 2015 was abandoned. It stated that the Division of Investment Management is "considering recommending that the SEC re-propose a new rule designed to enhance the regulation of the use of derivatives by registered investment companies, including mutual funds, exchange-traded funds, closed-end funds and business development companies." The proposed rule would regulate registered investment companies' use of derivatives and require enhanced risk management measures, the notice states.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.