The amendments aim to modernize the Names Rule and promote investor protection objectives by ensuring that a fund’s portfolio of holdings aligns with its name.

The US Securities and Exchange Commission (the SEC or the Commission) has adopted amendments to Rule 35d-1 under the Investment Company Act governing naming conventions for registered funds (the Names Rule). The SEC estimates that the percentage of registered funds subject to the rule will increase from 60% to 76% under the new Names Rule.