US Investment Companies

Overview:

Mutual funds, closed-end funds, or unit investment trusts that do not meet exemptive criteria are subject to registration under the Investment Company Act of 1940. Registered investment companies also are subject to the Securities Act of 1933 and the Securities Exchange Act of 1934. Although many of AIMA’s investment adviser members manage private funds exempt from registration, aspects of all three Acts apply to all investment companies, irrespective of registration status, and they therefore are meaningful to all fund managers.

AIMA’s advocacy and educational work regularly touches on issues of importance to all investment companies. Recent efforts have addressed recent FinCEN requirements for beneficial ownership reporting, new SEC rules for use of derivatives, potential changes to investment company cross trading practices and the new fair valuation framework for fund investments. Workshops, webinars and online resources are available to all members and can be downloaded on demand.

Members are encouraged to get involved in any of several working groups that focus on investment company matters and other issues affecting the investment advisory community at large.

Current work:

The SEC's new use of derivatives rules came into effect on 19 February 2021 and registered investment companies and business development companies must comply by 19 August 2022.  Early compliance is possible but can only be complete compliance; selective early compliance is not permitted.  AIMA, in conjunction with K&L Gates LLP, has published an implementation guide to assist affected firms in their efforts to come into compliance with the new use of derivatives requirements.  

 

(Last updated: January 13, 2022)