The SEC announced on June 19th that the conditional relief from the in-person voting requirements for fund boards will be extended. This relief was originally provided by the SEC in March 2020 and will now extend at least through December 31, 2020. The extension is designed to provide flexibility to boards of registered funds and business development companies, which may continue to face challenges meeting in person given the ongoing COVID-19 pandemic.
The SEC initially provided in-person board meeting relief in March as part of broader exemptive orders providing temporary relief from several requirements of the Investment Company Act and Investment Advisers Act. However, the SEC has determined not to extend the other relief provided in those orders at this time. This decision is based on SEC staff outreach to fund and adviser representatives. The SEC will continue to assess COVID-19-related impacts on investors and market participants. Firms and financial professionals affected by the pandemic are encouraged to contact the staff with questions and concerns. For contact information for the Division of Investment Management, see the Division of Investment Management Coronavirus (COVID-19) Response FAQs.
Sources:
SEC Extends Relief for Virtual Meetings of Fund Boards (www.sec.gov)
Order Under Section 6(c) and Section 38(a) of the Investment Company Act of 1940 Granting Exemptions from Sections 15(c) and 32(a) of the Investment Company Act and Rules 12b-1(b)(2) and 15a4(b)(2)(ii) Thereunder (www.sec.gov)
Division of Investment Management Coronavirus (COVID-19) Response FAQs (www.sec.gov)
