This post is the second installment of our discussion of the compliance requirements of new Rule 18f-4.
The comments on proposed Rule 18f-4 revealed a significant lacuna in the rule resulting from two unrelated changes to current regulations. First, the SEC will rescind Investment Company Act Release No. 10666 (“Release 10666”) as of August 19, 2022, the same day funds must comply with Rule 18f-4. Second, money market funds are excluded from the exemptions for derivatives transactions provided by Rule 18f-4. This post will explain why this was a problem and how the final rule addresses it.
Continue Reading Exclusion of Non-Standard Settlements—Something for Every Fund in Rule 18f-4