On May 23, 2018, the Securities and Exchange Commission (“SEC“) proposed rules and amendments intended to promote research on mutual funds, exchange traded funds, registered closed-end funds, business development companies, and similar covered investment funds.

The Commission believes that the proposal would reduce obstacles to providing research on investment funds by harmonizing the treatment of such research with research on other public entities.

If adopted, the proposal would generally establish a safe harbor for a broker or dealer to publish or distribute research reports on investment funds under certain conditions. This proposed safe harbor is similar to a regulatory safe harbor that currently exists for research reports about other public entities.

The public comment period will remain open for 30 days following publication of the proposing release in the Federal Register. Release.