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1387Some Funds May Have To Change Names

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  • Baker, John
    Nov 13, 2013

      The Securities and Exchange Commission’s Division of Investment Management has issued guidance encouraging the evaluation of fund names that suggest safety or protection from loss and to consider whether a name change is appropriate to address any potential for investor misunderstanding.  IM Guidance Update 2013-12 (Nov. 2013).  In the SEC staff’s view, terms such as “protected” and “guaranteed,” when used in a fund name without some additional qualification, may contribute to investor misunderstanding about the potential for loss associated with an investment in the fund.  The guidance notes that the staff already has requested that some existing and new funds change their names, and some funds have chosen to replace the term “protected” with terms such as “managed risk.” 


      IM Guidance Update 2013-12 is available online at





      John M. Baker, Esquire

      Stradley Ronon Stevens & Young, LLP

      1250 Connecticut Avenue, N.W., Suite 500

      Washington, DC 20036-2652

      p: 202.419.8413

      f: 202.822.0140

      FundLaw Listowner http://groups.yahoo.com/group/fundlaw