Section 12 D 1

Such potential abuses generally include the pyramiding of control and undue influence the layering of fees and complex fund of funds structures that are difficult for investors to understand.

Section 12 d 1. 80a 12 d 1 g to acquire securities issued by another registered investment company that is in the same group of investment companies may acquire in addition to government securities and short term paper. Section 12 d 1 e is a conditional exemption from the restrictions in sections 12 d 1 a and b that is relied upon by among others private funds and foreign investment companies to invest in u s registered funds. Section 12d 1 under the investment company act of 1940 restricts investment companies from investing in one another.

Section 12 d 1 of the act prohibits subject to certain exceptions so called fund of funds arrangements in which one fund invests in the shares of another. The rules broaden the ability of a fund to invest in shares of another fund in a manner consistent with the public interest and the protection of investors. Bdcs are subject to many but not all of the provisions of the 1940 act.

Specifically a fund is prohibited from. 80a 12 d 1 g i ii a registered open end investment company or a registered unit investment trust that relies on section 12 d 1 g of the act 15 u s c. Notwithstanding section 12 d 1 g i ii of the act 15 u s c.

111 203 effective 1 day after july 21 2010 except as otherwise provided see section 4 of pub. 1 in response to an oral or written request or application for the card. If the conditions of paragraph b of this section are satisfied notwithstanding sections 12 d 1 a 12 d 1 b 17 a and 57 of the act 15 u s c.

Section 12 d 1 of the 1940 act limits the ability of registered investment companies including etfs to hold. 80a 12 d 1 a 80a 12 d 1 b 80a 17 a and 80a 56 and 270 17d 1. Section 12 d 1 a of the 1940 act places the following limits on investments by investment funds in any registered investment company.

For more information regarding bdcs and their operations see our frequently asked questions about business development companies available at. 111 203 set out as an effective date note under section 5301 of title 12 banks and banking. 2 as a renewal of or substitute for an accepted creditcard.