SEC Delays Names Rule Implementation

On March 14, the Securities and Exchange Commission (SEC) issued a release that delays the compliance date for the amended Names Rule under Rule 35d-1 for six months. According to a Ropes & Gray client alert, new funds will be required to comply “at the time of the effective date of its initial registration statement on or following the new compliance dates – June 11, 2026 (larger entities) or December 11, 2026 (smaller entities).” For existing open-end funds, compliance with the new amendments will be required “at the time of the effective date of its first “on-cycle” annual prospectus update filed on or following June 11, 2026 (larger entities) or December 11, 2026 (smaller entities).” The Ropes & Gray client alert also highlights different compliance date requirements for BDCs and closed-end funds that rely on Rule 8b-16(b). According to the Commission’s press release, the extension “is designed to balance the investor benefit of the amended Names Rule framework with funds’ needs for additional time to implement the amendments properly, develop and finalize their compliance systems, and test their compliance plans.”

Click here to view the SEC press release covering the Names Rule implementation delay.
Click here to view a client alert from Ropes & Gray.