Dechert Webinar Series: Navigating the Recent SEC Rulemakings, Part 2

New Rule 18f-4: Registered Funds’ and BDCs’ Use of Derivatives, Part 2

The SEC recently adopted Rule 18f-4, which provides a new regulatory framework under Section 18 of the Investment Company Act of 1940 for addressing leverage and other risks related to registered funds’ and BDCs’ use of derivatives and certain other transactions that may create leverage. In this two-part webinar, speakers will discuss key issues for funds and BDCs in implementing Rule 18f-4.

Topics covered in Part 2 will include:

• Compliance with the limit on fund leverage risk, including selecting a designated reference portfolio and VaR testing.
• Compliance with the limit on derivatives exposure for limited derivatives users.
• Implications of treating reverse repurchase agreements and non-standard settlement cycle securities transactions as derivatives transactions.