SEC IM staff issues guidance update on mixed and shared funding
Abstract
Purpose
The article alerts investment companies and insurers of important SEC staff interpretive guidance regarding reliance on industry-standard exemptive relief.
Design/methodology/approach
Current industry practices and the SEC staff’s guidance are summarized, followed by a brief discussion of the potential implications to insurance companies and investment companies.
Findings
The SEC staff recognizes that the current approach to mixed and shared funding may be outdated, with the result that insurance companies and investment companies may be able to reduce compliance and regulatory burdens.
Practical implications
It is still too soon to gauge industry reaction, but insurance companies and investment companies should monitor industry practices relating to mixed and shared funding to determine whether they need to obtain and comply with industry-standard exemptive relief.
Originality/value
The SEC staff clearly recognizes that insurance companies issuing variable insurance contracts, and the funds that serve as their underlying investments, may be able to reduce compliance monitoring burdens and simplify their operations.
Keywords
Acknowledgements
© 2015 Dechert LLP
Citation
Robinson, K.T. and Church, K. (2015), "SEC IM staff issues guidance update on mixed and shared funding", Journal of Investment Compliance, Vol. 16 No. 2, pp. 30-32. https://doi.org/10.1108/JOIC-04-2015-0023
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Authors