SEC Updates Small Entity Definitions for Investment Firms
The SEC adopted rule amendments redefining which investment companies and advisers qualify as small entities under the Regulatory Flexibility Act.
The Securities and Exchange Commission has adopted amendments to rules governing which registered investment companies, investment advisers, and business development companies qualify as small entities under the Regulatory Flexibility Act, the agency announced.
The Regulatory Flexibility Act requires federal agencies to consider the impact of their rules on small businesses and small organizations. The updated definitions determine which firms are subject to those special considerations during the rulemaking process, making the classifications significant for how future SEC regulations are written and applied.
Read more Sun Life Financial Raises Common Share Dividend to $1.00 →
Business development companies, which provide financing to small and mid-sized businesses, are among the entities whose qualifying thresholds are being revised under the new amendments. The changes reflect the SEC's effort to ensure that its small-entity classifications remain current and accurately reflect the landscape of the investment management industry.
The amendments apply to registered investment companies and registered investment advisers, two broad categories that together encompass thousands of firms operating across U.S. financial markets. By updating these definitions, the SEC aims to bring greater regulatory precision to the process by which it assesses the burden new rules place on smaller market participants.
Continue reading at Press Releases.
