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Rajib Chanda Quoted in Ignites Regarding SEC’s Elimination of Regulatory Queue for Funds-of-Funds Investment Options
07.08.15
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Corporate Partner Rajib Chanda was quoted in Ignites, a Financial Times news service, in an article discussing the SEC’s elimination of the regulatory queue for certain types of ’40 Act funds of funds seeking to invest in derivatives and other instruments beyond stocks and bonds. The SEC’s no-action letter, issued on June 29, allows the Grant Park Multi-Alternative Strategies mutual fund to invest in affiliated funds as well as other investments such as derivatives, property and commodities without needing exemptive relief. Rajib explained that this clarification was necessary because “In 2006 the SEC decided rather than giving out exemptive relief over and over again, let’s just put it in a rule. But they used the word ‘securities’ and that was a mistake because there are derivatives that mutual funds invest in that may not be securities.”