SEC Grants Six-Month Extension for Fund Name Compliance Deadlines
Washington, D.C., March 14, 2025 – The Securities and Exchange Commission (SEC) has announced a six-month extension for compliance with the Investment Company Act “Names Rule” amendments. Originally adopted in September 2023, these amendments aim to prevent misleading fund names that misrepresent investment strategies and associated risks.
New Compliance Deadlines for Large and Small Fund Groups
The SEC’s revised timeline provides larger fund groups with an extended deadline from December 11, 2025, to June 11, 2026. Similarly, smaller fund groups now have until December 11, 2026, instead of the previous June 11, 2026, to achieve full compliance.
This extension is intended to accommodate funds requiring additional time to implement regulatory changes, enhance compliance systems, and ensure accurate execution of the new guidelines.
SEC Aims to Minimize Compliance Costs for Funds
To ease the financial burden of adhering to the updated Names Rule, the SEC has synchronized the revised compliance deadlines with annual disclosure and reporting obligations. By aligning these dates with a fund’s fiscal year-end, the Commission aims to streamline implementation, reducing operational costs and administrative challenges for investment firms.
The extended timeline underscores the SEC’s commitment to both investor protection and practical compliance. It allows funds to refine their compliance strategies while ensuring that fund names accurately reflect investment objectives and risk profiles.
