An SEC final rule amending the application process for funds seeking exemptive relief under the Investment Company Act of 1940 was published in the Federal Register. The final rule will go into effect on June 14, 2021.
As previously covered, the final rule will, among other things, amend 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. 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- consider an application for expedited review as withdrawn if an applicant fails to respond to SEC staff comments within a 30-day period.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- amends Rule 0-5 to consider an application as withdrawn if an applicant fails to respond to comments from SEC staff within a 120-day period.
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