SEC Staff Issues Interpretive Guidance on Rule Prohibiting Misleading Mutual Fund Names
The staff of the SEC issued informal guidance on Rule 35d-1 (the "Rule") under the Investment Company Act of 1940 (see the January 23, 2001 Alert regarding the Rule’s adoption), which imposes certain requirements on funds whose names imply particular types of investments. The staff’s guidance, which is in a question and answer format, addresses the following topics: (1) adoption of the 80% investment policy required by the Rule; (2) the application of the Rule to tax-exempt funds; (3) specific terms commonly used in fund names; (4) the shareholder notice requirements of the Rule; and (5) the Rule’s July 31, 2002 compliance date.
