SEC Proposes Streamlining Offering Rules For Closed-End Funds And BDCs While Also Proposing New Reporting Obligations

In March 2019, the SEC, at the direction of Congress, proposed rules (the "Proposed Rules") to modify the registration, communications, and offering processes for business development companies ("BDCs") and registered closed-end funds, including interval funds (together, "Affected Funds"), under the Securities Act of 1933 (the "Securities Act"). Many of these proposals are intended to provide Affected Funds access to certain streamlined offering processes that are currently available only to operating companies. At the same time, the Proposed Rules would also impose on Affected Funds additional reporting obligations under the Securities Exchange Act of 1934. In short, key elements of the proposals are: