IM Staff Allows Immediate Effectiveness for Closed-End Fund Prospectus Updates
The staff of the Division of Investment Management has granted no-action relief to a publicly-offered closed-end fund, allowing immediate effectiveness for post-effective amendments that update the financial statements. Without the relief, a closed-end fund not organized as an interval fund would have to wait for staff review of annual updates. The relief puts closed-end funds on the same footing as open-end funds pursuant to Rule 485(b) and interval funds pursuant to Rule 486(b). The staff noted that others could not rely on the relief but could seek relief on the same terms.