Listed Closed-End Funds Subject to New Compensation Committee Requirements
The SEC has adopted a new rule that requires national securities exchanges to adopt rules that ensure compensation committee independence. The rules apply to listed closed-end investment companies but do not apply to open-end companies. Exchanges must adopt rules requiring the independence of compensation committee members, sufficient funding so that compensation committees may retain an outside adviser, and the independence of any compensation adviser. New rules also require proxy disclosure of compensation adviser conflicts of interest.