The SEC adopted a final rule amending the application process for funds seeking exemptive relief under the Investment Company Act.
The final rule amends ICA Rule 0-5 ("Procedure with respect to applications and other matters") to provide for a prioritized review process for routine applications that are "substantially identical" to other recently approved applications (see previous coverage). Pursuant to the ICA Rule 0-5 amendments, SEC staff will:
- expedite applications that are "substantially identical" to at least two other applications granted in the past three years;
- generally approve qualifying expedited applications within 45 days of filing; and
- consider applications for expedited review as withdrawn if an applicant fails to respond to SEC staff comments within a 30-day period.
With regard to standard applications, the final rule:
- establishes new ICA Rule 202.13 ("Informal procedure with respect to applications under the Investment Company Act of 1940"), which requires SEC staff to take action within 90 days of an initial filing and each of the first three amendments thereto, and within 60 days of any subsequent amendment; and
- amends Rule 0-5 to consider an application as withdrawn if an applicant fails to respond to comments from SEC staff within a 120-day period.
The final rule will go into effect 270 days after publication in the Federal Register.
Originally published July 07, 2020.
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