SEC No-Action Letter Provides Relief for Fund Affiliated Transactions
FrontLine Compliance
On October 12, 2018, the SEC’s Division of Investment Management issued a no-action letter to the Independent Directors Council (“IDC”) regarding the oversight of affiliated transactions. Under the Investment Company Act, Rules 10f-3, 17a-7, and 17e-1 are commonly referred to in the fund industry as the “affiliated transaction rules” and are each an Exemptive Rule for mutual funds.
These Exemptive Rules were adopted to allow for certain types of affiliated transactions to occur with specific…
