SEC Takes Targeted Action to Assist Funds and Advisers in Light of COVID-19 Coronavirus Pandemic: Provides Temporary, Conditional Exemptions from Certain 1940 Act and Advisers Act Requirements

On March 13, 2020, the Securities and Exchange Commission issued two orders providing relief to registered funds and investment advisers whose operations may be affected by the coronavirus outbreak. In each order, the SEC acknowledged that coronavirus-related disruptions may pose challenges to satisfying certain requirements under the Investment Company Act of 1940 and rules thereunder, as well as the Investment Advisers Act of 1940 and rulesthereunder. In light of these challenges, the SEC provided certain temporary, conditional relief, including:

• For registered investment companies, unit investment trusts and business development companies, as applicable, relief from certain requirements relating to:
  • In-person board votes;
  • Form N-CEN and Form N-PORT filings;
  • Shareholder report transmittal; and
  • 30-day advance notice filings of intention to call or redeem securities.
• For registered investment advisers (RIAs) and exempt reporting advisers (ERAs), as applicable, relief from certain requirements relating to:
  • Form ADV amendments and filings;
  • Form ADV, Part 2 delivery; and
  • Form PF filings. 

Further, the SEC included in the 1940 Act Order a statement regarding SEC enforcement action related to certain prospectus delivery obligations. The exemptive relief and SEC statement are summarized in the tables here.

Authored by Thomas Bogle, Corey Rose, Michael Sherman, Aaron Withrow, Phillip Garber, and Monica Patel.