SIFMA recommends derivative rule improvements

SIFMA’s Asset Management Group (SIFMA AMG) says it has submitted a comment letter to the Securities and Exchange Commission (SEC) regarding the SEC’s proposed rule governing registered funds’ use of derivatives. SIFMA AMG says the letter supports the SEC’s regulatory goals, while expressing opposition to the proposed portfolio limits and recommending important changes to certain aspects of the proposed rule, including changes to the proposed portfolio limits and asset segregation requirements.

Said Kenneth E. Bentsen, Jr, SIFMA president and chief executive officer: “SIFMA’s Asset Management Group members share the SEC’s goal of promoting a resilient marketplace that promotes the best interests of investors. We support the SEC’s efforts to consolidate and update its guidance regarding the use of derivatives by regulated funds. At the same time, however, derivatives are important investment tools, and it is imperative that any new rules be appropriately balanced to provide sufficient flexibility for regulated funds to use derivatives in order to manage risks effectively and help investors achieve their financial goals.”