Investment Company

Insights and guidance from ACA's team of experienced compliance and technology professionals.

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Regulatory Changes with Compliance Implications for Exchange-Traded Funds
April 24, 2019

Several new regulatory requirements and developments should be evaluated by certain ETF sponsors and advisers regarding changes to the stock-exchange listing standards and Regulation M. This article summarizes these developments and their potential compliance program implications.

The SEC encourages transfer agents to review and strengthen policies, procedures and controls
March 28, 2019

On February 13, 2019, the Securities and Exchange Commission’s (SEC) Office of Compliance Inspections and Examinations ( OCIE) issued a Risk Alert highlighting the concerns and issues associated with certain types of transfer agents (“TAs”) that also serve as paying agents. While the Risk Alert is aimed at certain operational and regulatory requirements, compliance professionals within the mutual fund industry should also consider how certain areas identified by OCIE are compared to their mutual fund company’s in-house or third-party TA and/or sub-transfer agent(s).

March 20, 2019

We invite you to participate in our second Liquidity Risk Management Program Rule Survey. We understand there is a continued need for transparency and insight into the various ways mutual funds, investment advisers, and sub-advisers are approaching the liquidity risk management program rule. By participating in this survey, you can help us identify trends in how firms are complying with, or getting ready to comply with the rule. Results will be presented later this spring so you can implement some of the most common practices at your firm.

The SEC’s Busy February for Registered Investment Companies
March 18, 2019

The U.S. Securities and Exchange Commission (SEC) and its staff have been busy since the end of the recent partial government shutdown. While there is certainly much work behind the scenes we do not get to see, there is plenty of public work that registered investment companies should note. For instance, the following matters occurred during the last two weeks of February

November 19, 2018

On November 8, 2018, the Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (“OCIE”) issued a National Exam Program Risk Alert announcing its 2019 examination initiatives focused on matters relevant to mutual funds and exchange-traded funds (“ETFs”). These initiatives illustrate OCIE’s continued commitment to examining matters important to retail investors, as mutual funds and ETFs are their primary investment vehicles. Here we focus on the ETF initiatives.

October 24, 2018

In early 2017, the SEC approved rule-change proposals establishing continued listing standards for passively and actively managed exchange-traded products. More specifically, the rules require ETP issuers and managers to adopt new monitoring and oversight protocols to ensure continued compliance with the applicable listing standards. In the event an ETP falls out of compliance with the standards, the Manager must promptly notify the appropriate Exchange. 

July 5, 2018

Closed-end funds may look similar to open-end funds but they're actually very different.  We invite you to join ACA Compliance Group’s Thomas Riley and James Pappas on Tuesday, July 31st, 2018 at 2 p.m. EDT as they discuss the closed-end fund investment vehicle with particular attention to how it differs from open end funds. 

June 4, 2018

ACA is pleased to present, 18 Months into the Liquidity Risk Management Program Rule, a white paper examining the points of consideration for fund complexes and their advisers that have surfaced in the eighteen months since the rule took effect.

June 4, 2018

Background 

In 1997, the SEC adopted rule 3a-4 under the Investment Company Act of 1940 (the “Company Act”) to “provide a non-exclusive safe harbor from the definition of Investment Company for certain advisory programs.

May 16, 2018

Look for ACA at Booth 220 at the 2018 ICI General Membership Meeting in Washington, DC.

May 14, 2018

ACA’s Investment Company practice is dedicated to supporting our clients in navigating the SEC’s liquidity risk management program rule through educational resources and alerts, benchmarking insight, help with program management and devel