EY Reviews Recent Regulatory Proposals’ Implications for BDCs
A recent publication from EY surveys the regulatory landscape for business development companies and discusses in depth SEC proposals and exemptive orders. EY writes that it is critical that BDCs monitor the SEC’s proposals as they are finalized and for management to engage in discussions with internal stakeholders, external auditors, and advisors. According to the SEC’s proposals, BDCs could benefit from reduced financial reporting requirements as a result of the changes to the definitions of accelerated filer and large accelerated filer and the changes to the criteria for significant subsidiary tests. Additionally, under the proposed derivatives and fair valuation proposed rules BDCs could see increased demand on management’s analysis and documentation related to unfunded commitments and Level 2 investments and enhanced board oversight requirements.