SEC Extends Relief for Virtual Meetings of Fund Boards

Washington, D.C.–(Newsfile Corp. – June 19, 2020) – Today, the Securities and Exchange Commission announced that it is extending conditional relief from the in-person voting requirements for fund boards that it originally provided in March 2020.  That relief will now extend at least through December 31, 2020.  Today’s extension is designed to provide flexibility to boards of registered funds and business development companies (funds) that may continue to face challenges meeting in person. 

The Commission initially provided in-person board meeting relief in March as part of broader exemptive orders providing temporary relief from several requirements of the Investment Company Act and Investment Advisers Act.[1]  Based on staff outreach to fund and adviser representatives, the Commission has determined not to extend the other relief provided in those orders at this time.  The Commission and its staff continue to assess impacts relating to COVID-19 on investors and market participants.  Firms and financial professionals affected by COVID-19 are encouraged to contact the staff with questions and concerns.

For contact information for the Division of Investment Management, see Division of Investment Management Coronavirus (COVID-19) Response FAQs.

[1] See Release No. IC-33824 (March 25, 2020) (Order Granting Exemptions from Specified Provisions of the Investment Company Act and Certain Rules Thereunder; Commission Statement Regarding Prospectus Delivery) and Release No. IA-5469 (March 25, 2020) (Order Under Section 206A of the Investment Advisers Act of 1940 Granting Exemptions From Specified Provisions of the Investment Advisers Act and Certain Rules Thereunder). These two releases superseded similar orders dated March 13, 2020.