Issue
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Date
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Relief/Time
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Conditions
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Short-term funding (borrowing and lending) for open-end funds and insurance company separate accounts
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3/23/20
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Covers March 23 – at least June 30 (a future SEC notice will specify the termination date)
Four sets of exemptions:
Borrowing from Affiliated Persons: Can borrow money from certain affiliates, other than RICs, and can make collateralized loans to funds and separate accounts.
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Fund must notify SEC staff at IM-EmergencyRelief@sec.gov prior to relying on the relief that it will rely on the exemptive order.
Borrowing from Affiliated Persons: The fund’s board must make certain findings, including that the borrowing will be used to satisfy shareholder redemptions.
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Interfund Lending for Funds with Existing Interfund Lending Orders: A fund that has an order that permits an interfund lending and borrowing facility (IFL) is permitted to:
Make loans through the IFL in an aggregate amount that does not exceed 25% of its current net asset assets, even if there is a lower limit in the fund’s IFL order;
Borrow (if permitted under the IFL order) or make loans through the IFL for any term notwithstanding conditions in the IFL order that limit the terms of loans, as long as certain requirements are satisfied; and
Rely on relief related to deviation from fundamental investment policies.
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Interfund Lending for Funds with Existing Interfund Lending Orders:
(a) Any loan is otherwise made in accordance with the terms and conditions of the existing IFL order; and
(b) Prior to relying on the relief, the fund must disclose on its public website that it is relying on an SEC exemptive order that modifies the terms of the existing IFL order to permit additional flexibility to or provide or obtain short-term funding from its IFL.
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Interfund Lending Arrangements for Funds without Existing Interfund Lending Orders: May establish and participate in an IFL as described in any IFL order issued by the SEC within the past 12 months
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Interfund Lending Arrangements for Funds without Existing Interfund Lending Orders: (a) Satisfies the terms and conditions of the recent IFL order, except for certain requirements; and
(b) Prior to relying on the relief, the fund must disclose on its public website that it is relying on the SEC exemptive order to use an IFL. If the fund makes certain filings, it must update its disclosure regarding its participation in the IFL.
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Ability to Deviate from a Fundamental Policy: A fund is permitted to enter into a lending or borrowing transaction that deviates from a fundamental policy without obtaining shareholder approval
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Ability to Deviate from a Fundamental Policy: (a) Fund board reasonably determines that the lending or borrowing is in the best interest of the fund and its shareholders; and
(b) Fund files a prospectus supplement and includes a statement on its public website.
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No-Action Relief for Money Market Funds
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3/19/20
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In effect until notice provided by SEC staff
Permits affiliated person of a money market fund that is subject to certain bank regulations to purchase securities from the fund
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(a) The purchase price of the purchased security would be its fair market value as determined by a reliable third-party pricing service;
(b) The purchases meet the conditions of rule 17a-9 under the 1940 Act except to the extent that the terms of such purchases would otherwise conflict with (i) applicable banking regulations or (ii) the exemption issued by the Board of Governors of the Federal Reserve System on March 17, 2020, defining “covered transaction” for purposes of section 23A of the Federal Reserve Act to not include the purchase of assets from an affiliated money market fund; and
(c) The money market fund timely files Form N-CR reporting such transaction under Part C and reports in Part H that the purchase was conducted in reliance on this letter.
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No-Action Relief for Purchases of Debt Securities by Affiliated Persons
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3/26/20
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In effect until notice provided by SEC staff
Permits affiliated persons that are not registered investment companies to purchase debt securities from a fund other than a money market fund
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(a) The purchase price is paid in cash;
(b) The price of the purchased debt security is its fair market value under Section 2(a)(41) of the Investment Company Act, provided that this price is not materially different from the fair market value of the security indicated by a reliable third-party pricing service;
(c) In the event that the purchaser sells the purchased security for a higher price than the purchase price paid to the fund, the purchaser shall promptly pay to the fund the amount by which the subsequent sale price exceeds the purchase price paid to the fund. If the purchaser is subject to Sections 23A and 23B of the Federal Reserve Act, this condition does not apply to the extent that it would otherwise conflict with (i) applicable banking regulations or (ii) any applicable exemption from such regulations issued by the Board of Governors of the Federal Reserve System; and
(d) Within one business day of the purchase of the security, the fund publicly posts on its website and informs the Staff via email to IM-EmergencyRelief@sec.gov stating the name of the fund, the name of the purchaser, the security(s) purchased (including a legal identifier if available), the amount purchased, and the total price paid.
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Form N-CEN
Form N-PORT
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3/25/20
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45-day extension
Covers March 13 - June 30
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Fund must: (a) Be unable to meet a filing deadline due to COVID-19;
(b) Promptly notify SEC staff via email at IM-EmergencyRelief@sec.gov stating that it is relying on this Order;
(c) Include a statement on public website briefly stating that it is relying on this Order;
(d) File within 45 days of the original due date; and
(e) Include a statement in the form that the filer relied on this Order and the reasons why it was unable to timely file.
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Investment Company Annual and semi-annual reports
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45-day extension to transmit report to shareholders
(Must file the report within 10 days of transmission to shareholders)
Covers March 13 - June 30
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Adviser must: (a) Be unable to prepare or transmit the report due to COVID-19;
(b) Promptly notify SEC staff via email at IM-EmergencyRelief@sec.gov stating that it is relying on this Order;
(c) Include a statement on public website stating that it is relying on this Order; and
(d) Transmit the reports to shareholders within 45 days of the original due date and files the report within 10 days of transmission to shareholders.
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Form N-23C-2
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Can file a Notice of intention to call or redeem securities fewer than 30 days in advance
Covers March 13 - August 15
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Fund must: (a) Promptly notify SEC staff via email at IM-EmergencyRelief@sec.gov that it is relying on the SEC’s exemptive Order;
(b) Ensure that filing the Notice on an abbreviated time frame is permitted under state law and governing documents; and
(c) File a Notice under Rule 23c-2 prior to:
(i) Any call or redemption of existing securities; (ii) The commencement of any offering of replacement securities; and (iii) Providing notification to the existing shareholders whose securities are being called or redeemed.
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Proxy statements, annual reports, and other soliciting materials (Exchange Act Rules 14a-101, Rule 14f-1))
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3/25/20
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45-day extension
Covers March 1 - July 1
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Exempt from requirement to furnish if: (a) security holder has a mailing address located in an area where the customary delivery service has been suspended due to COVID-19; and
(b) made a good faith effort to furnish the materials.
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