SEC Provides Temporary Additional Flexibility to Registered Investment Companies Affected by Coronavirus

Permits Funds to Use Additional Funding and Other Tools to Manage their Portfolios for the Benefit of Investors

Washington DC (STL.News) The Securities and Exchange Commission Monday announced temporary flexibility for registered funds affected by recent market events to borrow funds from certain affiliates and to enter into certain other lending arrangements.  Today’s relief is designed to provide funds with additional tools to manage their portfolios for the benefit of all shareholders as investors may seek to rebalance their investments.

“Today’s temporary action will provide an additional tool that funds can use to manage their portfolios for the benefit of their investors in the current market environment,” said Chairman Jay Clayton.  “This action provides funds with additional flexibility to navigate volatile markets while meeting their obligations to investors.”

Today’s relief is the latest in a series of steps the Commission has taken to assist financial market participants in addressing the impacts of the coronavirus.  The Commission’s website provides additional information regarding its response.  The Commission and its staff continue to assess impacts relating to the coronavirus on investors and market participants, and will consider additional relief from other regulatory requirements where necessary or appropriate. Firms and financial professionals affected by the coronavirus are encouraged to contact the staff with questions and concerns.