The Managed Funds Association (MFA) published a letter dated January 20, 2025, to Acting Chair Mark T. Uyeda of the US Securities and Exchange Commission, outlining several policy recommendations for the SEC’s consideration.
The MFA urged the SEC to withdraw its appeal of the “Dealer Rule,” which was vacated by the US District Court of the Northern District of Texas on November 21, 2024. The SEC appealed the Court’s decision to vacate the rule on January 17, 2025. The MFA encouraged the SEC to withdraw its appeal, arguing that the rule was unworkable and harmful to investors and markets. For additional background on the Dealer Rule, see our previous Legal Update.
The MFA requested a six-month extension for compliance with Rule 13f-2 and Form SHO. The Investment Company Institute had also highlighted similar concerns, as discussed in our blog post here. Now, of course, exemptive relief has been granted, as discussed in our blog post.
The MFA also sought an extension of the compliance date for the new amended Form PF requirements until September 12, 2025. As we discussed, the SEC and Commodity Futures Trading Commission has extended the compliance deadline from March 12, 2025, to June 12, 2025.
Finally, the MFA called for an immediate halt to the SEC Division of Enforcement’s practice of “regulation through enforcement,” arguing that enforcement actions brought under the prior SEC regime had been overreaching and inconsistent with prior interpretation of securities laws and regulations.
Read the full text of the letter.