SEC Adopts Amendments to Exemptive Applications Procedures
The SEC adopted rule amendments to speed up its review procedures for exemptive and other applications under the 1940 Act. The SEC said a more efficient application process will allow applicants to more quickly realize the benefits of relief; allow fund shareholders to share in these benefits; and make these applications less expensive for applicants. According to the highlights of the SEC’s release: (1) Expedited review will be available if the application is substantially identical to two other applications for which an order granting the relief has been issued within three years of the date of the application’s initial filing. (2) Notice for an application filed under expedited review will be issued no later than 45 days from the date of filing unless the application is not eligible under the rules or additional time is necessary for appropriate staff consideration. (3) An application for expedited review will be deemed withdrawn if the applicant does not respond to comments from SEC staff within 30 days. For other applications that do not receive expedited review the SEC provided the following highlights: (1) The 1940 Act rule amendments will deem an application outside of expedited review withdrawn when the applicant does not respond to comments from SEC staff within 120 days. (2) A new 1940 Act rule establishes an internal timeframe for SEC staff to take action on applications outside of expedited review within 90 days of the initial filing and each of the first three amendments, and within 60 days of any subsequent amendment.