Sub-Advisor Able to Advise Registered Investment Company
Without Shareholder Approval
In a recent SEC no-action letter (RS Global Natural Res. Fund,
SEC no-action letter, available 3/6/14), the SEC stated that it
would take a non-enforcement position if a SEC registered
investment adviser to a fund registered under the Investment
Company Act of 1940 entered into an interim sub-advisory agreement
with another SEC registered investment adviser although the
sub-advisory agreement had not been approved by a majority of the
fund's shareholders, as required under the Investment Company
Act. The relief granted by the SEC's no-action position, on an
interim basis on obtaining the consent of the fund's
shareholders, was necessary because of a reorganization of the
adviser to the fund whereby certain members of the adviser's
management team formed their own SEC registered investment adviser.
In order to avoid any interruption of the advisory services to the
fund, the newly
