United States: Dead Rules Walking: The SEC Removes Two Zombie Rules – Global Investment Law Watch
Aug 06 2026 Browse archives for August 06, 2026 Posted in Global Regulatory Development Tagged with 40 Act, CFR, Chamber of Commerce v. SEC, Code of Federal Regulations, Fund Board Requirement, Fund Governanace, Investment Company Act of 1940, SEC, U.S. Securities and Exchange Commission (SEC), United States (US) Share LinkedInTwitterFacebook By: Thoreau Bartmann and Marguerite Laurent Key Takeaways On 4 August 2026 the SEC deleted two long dead requirements from its rulebook.
SEC.gov | Investment Company Governance Technical Amendments. Specifically, the SEC deleted a requirement that 75% of a fund board be independent and that the board chair be independent, both provisions that had been struck down by a court in 2006, yet were still in the rulebook twenty years later. What Happened The Investment Company Act of 1940, as amended (the 1940 Act) requires that at least 40% of a regulated fund board be “disinterested.” In 2001, the SEC established fund governance standards for regulated funds that choose to rely on various exemptive rules that permit the funds to do certain things the 1940 Act would otherwise prohibit, such as trading with an affiliated fund, merging with one, or payi…
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