IM Division Extends No-Action Relief on In-Person Meetings Through June 15, 2020

In connection with broader relief from the SEC to public companies dealing with the effects of the Coronavirus, the Division of Investment Management said in a statement that it is actively monitoring the current and potential effects of COVID-19 on advisers and funds. In the statement, IM staff announced an extension of the no-action position issued to the Independent Directors Council last February with respect to unforeseen or emergency circumstances to cover all in-person approvals and renewals (including material changes) of contracts, plans or arrangements under section 15(c) or rules 12b-1 or 15a-4(b)(2), as well as the selection of a fund’s independent public accountant where such accountant is not the same accountant as selected in the immediately preceding fiscal year. The extension of the no-action position applies to fund board meetings held until June 15, 2020. The Division staff said it may extend the time period for the no-action position as circumstances warrant, with any additional conditions deemed appropriate. IM staff also noted that the statement represents the views of the staff of the Division of Investment Management and is not a rule, regulation, or statement of the SEC.