SEC Names Rule Compliance Date Extended
SEC RELEASES
Introduction
On Friday, March 14th, the SEC announced that the Names Rule is receiving a six (6) month extension to the compliance dates.
The updated compliance dates are listed below:
- Larger Fund Groups (Net Assets greater than $1 Billion as of the end of your most recent fiscal year)
- June 11th, 2026.
- Smaller Fund Groups (Net Assets less than $1 Billion as of the end of your most recent fiscal year)
- December 11th, 2026.
For those that may have missed it, Vigilant participated in a Names Rule Webinar alongside K&L Gates and Senior Special Counsel, Division of Investment Management, Amanda Wagner, who was one of the members from the SEC that worked on the adoption of the Names Rule.
To access a free replay of that Webinar, click on the button below.
Who does this Rule Apply to?
- Registered Investment Companies (RICs); and
- Business Development Companies (BDCs).
What was the Main Driver for this Extension?
- Recognition by the SEC that Funds needed additional time to properly implement the amendments.
- Additional time was needed for compliance systems to be developed and finalized, as well as testing their compliance plans.
- They made it clear they were aware of the coordination and associated challenges regarding collaboration with many providers (Compliance, Legal, Portfolio Management, Reporting, Distribution, Technology).
- The SEC made an additional note that they aligned the compliance dates with the timing of certain annual disclosure and reporting obligations that are tied to the end of a Fund’s fiscal year.
Vigilant’s Conclusion
This extension provides much needed relief for the industry to allow for more time to comply with the Names Rule Amendments.
While the extension does provide relief, it is important to make clear that this Rule will still be a heavy lift and that a delay in implementation should not be taken into consideration.
There are many implementation steps that are needed, and examples of them are listed below (per the SEC’s release on this Names Rule extension).
- Drafting and adopting appropriate policies and procedures;
- Building compliance, recordkeeping, and reporting processes;
- Updating various disclosures;
- Designing, building, and testing technological systems for trade management, compliance, and recordkeeping functions; and
- Seeking board (along with, in some cases, shareholder) approvals.
For Firms this applies to, Funds need to assess their allocations and investment strategies to be sure that they comply with both the 80% requirement, and the prohibition against titles that are misleading.
If you need assistance with the implementation of this Rule or would like to learn more about Vigilant’s Compliance Services for RICs (Closed End Funds, ETFs, Mutual Funds) and BDCs, schedule a call with a member from Vigilant’s Executive Team by clicking on the button below.