SEC Proposes Reforms for BDCs, Closed-End Funds, Adopts Rules to Simplify Disclosures

The SEC proposed rule amendments mandated by Congress aimed at improving access to capital and facilitating investor communications by BDCs and registered closed-end funds. The proposed amendments would modify the registration, communications, and offering processes available to BDCs and registered closed-end funds, building on offering practices that operating companies currently use.  The proposal would allow eligible funds to engage in a more streamlined registration process to sell securities in response to market opportunities and also would allow BDCs and registered closed-end funds to use communications and prospectus delivery rules currently available to operating companies. The SEC also is proposing a modernized approach to registration fee payments for closed-end funds that operate as interval funds.  The SEC also adopted rules to modernize and simplify disclosure requirements for corporations, fund advisers and mutual funds. The amendments are expected to benefit investors by eliminating outdated and unnecessary disclosure and making it easier for them to access and analyze material information, the SEC said.  The amendments are expected to affect mutual funds’ registration statements and Form N-CSR filings.