SEC Allows Firms to Exclude 529 Plans from Codes of Ethics Reporting
In a recent No-Action Letter, the Staff of the SEC’s Division of Investment Management allows investment advisers to exclude interests in 529 plans from Code of Ethics reporting and recordkeeping requirements. The Staff indicates that the No-Action Relief applies to Codes under both the Advisers Act and the Investment Company Act. The Relief would not apply where the adviser manages or distributes the 529 plan. The Staff’s reasoning is predicated on the limited ability of plan participants to change investment strategies or underlying investments.