Joshua Deringer Discusses Pushback of ‘40 Act Provisions With BoardIQ

In “Some Funds With Foreign Subsidiaries Talking Back to SEC,” BoardIQ spoke to investment management partner Joshua Deringer about pushback from the Securities and Exchange Commission (SEC) asking that funds operating offshore subsidiaries confirm the subsidiaries’ advisory agreements comply with Section15 of the ‘40 Act.

“We have seen an increase in that,” said Deringer, who noted the SEC may feel the approach is a way to respond more quickly to the ever-changing fund landscape than providing formal guidance on these topics. “I’m not justifying it as the right way to do things; it can be frustrating.”

Deringer commented, “The commission or staff hasn’t put out guidance on this, so there will be disparate treatment depending on who reviews the registration statement.” Rather than rely on SEC comments, “I think the industry would welcome guidance,” he added.

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