New Fund of Funds Rule: Avoiding Regulatory Pitfalls and Investor Disputes When Funds Invest in Other Funds
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will analyze the SEC's new fund of funds rule and guide counsel on the regulatory requirements and investor protections that investment fund managers must consider when investing in other funds.
- Previous regulation of fund of funds arrangements--Section 12(d)(1) of the Investment Company Act of 1940
- The new fund of funds rule--comprehensive framework for investment funds to invest in other funds
- Restrictions and requirements under the new rule
- Ownership thresholds
- Limitations on control and what constitutes control
- Limitations on voting rights
- Required fund findings
- Complex structures
- Fund of funds investment agreements--key features
- Effect on ETF investments
- Compliance challenges
The panel will review these and other key issues:
- In what respect does the new rule expand on funds' ability to hold investments in other funds?
- When is one fund deemed to have control over another under the new rule?
- How are the voting rights of acquiring funds limited under the rule?
- When is an investment agreement required, and what issues should be addressed in the investment agreement?
- How will the limitations of complex structures require modifications of current arrangements?
- How will the new rule affect current ETF fund of funds arrangements?
Jay G. Baris
Mr. Baris has practiced in the asset management area for more than 35 years. He is widely recognized for his breadth of... | Read More
Mr. Baris has practiced in the asset management area for more than 35 years. He is widely recognized for his breadth of experience representing registered funds, investment advisers, financial institutions, broker-dealers and independent directors on the full spectrum of financial services regulation, transactions and governance matters. Mr. Baris’ work with registered funds includes mutual funds, closed-end funds, exchange-traded funds and business development companies. He has extensive experience advising on the regulatory aspects of fund and investment advisory operations, and has represented numerous clients on M&As, reorganizations, compliance, exemptive applications and compliance issues. He also advises operating companies on “status” issues that arise under the Investment Company Act of 1940. More recently, he has been advising FinTech clients on cryptocurrency issues and financial services clients on issues relating to the COVID-19 pandemic. Mr. Baris is an active speaker and writer on issues concerning investment management and the regulation of financial institutions.Close
Eric D. Simanek
Sullivan & Worcester
Mr. Simanek’s practice focuses on financial services, including mutual funds, closed-end funds, exchange-traded... | Read More
Mr. Simanek’s practice focuses on financial services, including mutual funds, closed-end funds, exchange-traded funds and commodity pools, and their boards of directors on issues regarding regulatory compliance and product development. He assists clients in navigating laws administered by the SEC, Commodity Futures Trading Commission and National Futures Association, and state securities laws. Mr. Simanek also advises investment advisers on issues relating to registration and compliance policies and procedures. He often advises exchange-traded funds in connection with their exemptive relief and the launch of new funds, as well as non-investment companies on issues regarding their status under the Investment Company Act of 1940.Close