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Rajib Chanda Quoted in Barron’s on Potential Updates to SEC Rules on Fund Names
03.06.20
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Corporate Partner Rajib Chanda was quoted in a Barron’s article titled, “SEC Cracks Down On Fund Names.” The article notes the SEC recently issued a request for public comment on potential changes to its framework regarding fund names, addressing a growing concern that fund names can be misleading or confusing. While the Investment Company Act of 1940 states funds are prohibited from using deceptive names, the current naming regulations do not consider all types of funds and their related elements, including funds that pursue particular strategies (as opposed to types of investments) and funds that achieve investment exposure through derivatives, among others. Discussing the potential updates to the rules, Rajib says “[r]egulators may issue guidelines in niches such as derivatives, tech, and ESG, rather than rewriting the entire Names Rule.”
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