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The staff of the Division of Investment Management (“Division”) of the US Securities and Exchange Commission (“SEC”) has published “FAQs” regarding relief for funds and advisers affected by COVID-19 (the “FAQs”).  The FAQs include, among others:

  • information about how to contact the Division with questions or concerns about COVID-19 related operational or compliance

On April 22, 2020, the US Securities and Exchange Commission’s Division of Investment Management (“Staff”) announced that it is extending the EDGAR filing window on April 29, 2020, from 5:30 p.m. to 10:00 p.m. EDT for registered investment company (“RIC”) and business development company (“BDC”) filings.  This extension was instituted to mitigate potential filing delays

On March 25, 2020, the US Securities and Exchange Commission (“SEC”) issued an order (“Modified Order”) modifying exemptions provided pursuant to a March 4, 2020 order regarding (“Original Order”) under the Securities Exchange Act of1934 (“Exchange Act”). The Modified Order supersedes the Original Order.

The Original Order provided relief from certain filing deadlines under the Exchange Act and related rules and regulations thereunder, as described below. The time period for the relief under the Original Order applied to filing deadlines from March 1, 2020 to April 30, 2020. The Modified Order extends that time period to July 1, 2020.


Continue Reading SEC Extends COVID-19 Related Relief for Certain Exchange Act Filings

On March 22, 2020, the United States Office of the Comptroller of the Currency (OCC) announced an interim final rule effective immediately to revise its short-term investment fund (STIF) rule for national banks acting in a fiduciary capacity.[1] The amendment allows the OCC to authorize banks to temporarily extend maturity limits of STIFs in order to address the market stress caused by the COVID-19 outbreak that is adversely affecting banks’ ability to operate in compliance with maturity limits identified in the STIF rule. While the amendment directly applies to national banks, other managers of STIF may be indirectly affected.[2]

In connection with the announcement of the interim final rule, the OCC announced an order, effecting the amendment to the STIF rule, to extend maturity limits for STIFs affected by COVID-19.[3] Pursuant to the order, a bank will be deemed to be in compliance with the STIF rule if:


Continue Reading US OCC Extends STIF Maturity Limits in Light of COVID-19 Market Conditions

On March 18, 2020, the Board of Governors of the Federal Reserve System (“Federal Reserve”) established a facility that will provide liquidity to certain types of money market mutual funds (“MMFs”) by making secured loans to financial institutions that purchase certain assets from MMFs (the Money Market Mutual Fund Liquidity Facility, or “MMLF”).[1] The MMLF is intended to support prime, state and municipal MMFs that experience significant stress in the coming days in the event that investors seek to liquidate MMF shares into cash. This facility is similar to one operated by the Federal Reserve during the 2008 financial crisis but will be available for a wider range of assets. It also builds on efforts taken last week through the launch of the Commercial Paper Funding Facility to purchase unsecured and asset-backed commercial paper rated A1/P1 directly from eligible companies and the Primary Dealer Credit Facility to offer overnight and term-secured funding to primary dealers.[2]

We recommend that financial institutions review the procedures used in connection with the 2008 facility and that MMFs begin discussions with financial institutions regarding liquidity support through the MMLF.


Continue Reading US Federal Reserve Establishes Money Market Mutual Fund Liquidity Facility as Part of COVID-19 Response