The SEC’s new derivatives rule: practical implications for funds

The SEC recently adopted Rule 18f-4 under the 1940 Act, which will establish a comprehensive framework for the use of derivatives transactions by registered funds.  The rule will replace SEC guidance and staff no-action letters that together have governed the use of derivatives by registered funds for over 40 years with an expansive regulatory framework.  Funds will not need to come into compliance with the rule until the summer of 2022, but most fund families will need to devote significant time and resources to prepare for the new regulatory framework in advance of the compliance date. 

Members of the Asset Management and Investment Funds practice of K&L Gates will provide a webinar on this rule, which will include the following topics:

• Overview of the Rule;
• Approving a Derivatives Risk Manager;
• Understanding the Derivatives Risk Management Program;
• What to Expect in Board Reporting; and
• Board Obligations When Funds Fall Out of Compliance