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K&L Gates: Effect of the Dodd-Frank Act on Investment Companies

K&L Gates has issued a client memo analyzing the potential effects the Dodd-Frank Wall Street Reform and Consumer Protection Act may have on investment companies and the investment management industry as a whole.  According to the publication: 

The core provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") for the most part focus on areas of the financial services industry other than the registered fund sector. However, the Dodd-Frank Act's sweeping expansion of federal regulation in the financial sector will affect investment companies and the investment management industry as a whole, generally in indirect and often subtle ways. Moreover, many of the more controversial issues under consideration during the legislative process were left to be resolved by regulatory studies and rulemakings, and in some cases further remedial legislation, deferring their resolution to a future date.

The publication discusses briefly some of the more significant areas in which registered funds will be broadly affected by the Dodd-Frank Act.  In particular, the memo looks at the potential for investment companies and complexes to be "Systematically Significant Financial Institutions," investor protection provisions, private fund adviser registration, fund distribution, derivatives, short selling, securities lending, and fund board oversight and governance.  

The memo provides a simple and concise overview of the ways in which the new financial reform legislation may affect funds.

The memo can be found at:  http://www.klgates.com/newsstand/Detail.aspx?publication=6592