An SEC proposal to amend the application process for funds seeking exemptive relief under the Investment Company Act of 1940 was published in the Federal Register. Comments on the proposal must be submitted by November 29, 2019.

As previously covered, the proposal would, among other things, amend ICA Rule 0-5 ("Procedure with Respect to Applications and Other Matters") to provide for a prioritized review process for routine applications that are "substantially identical" to other recently approved applications. Pursuant to the proposed ICA Rule 0-5 amendments, SEC staff would:

  • expedite applications that are "substantially identical" to at least two other applications granted in the past two years; and

  • approve qualifying expedited applications within 45 days of filing.

In addition, the proposal would require SEC staff to take action on standard applications within 90 days of the initial filings and notify applicants of any extensions.