Buzz Archive:
SEC Votes to Adopt Antifraud Rule Pertaining to Pooled Investment Vehicles

by Goodwin Procter, 9/13/2007

The SEC voted unanimously to adopt a new antifraud rule under the Investment Advisers Act of 1940. The new rule will make it "a fraudulent, deceptive, or manipulative act, practice, or course of business for an investment adviser to a pooled investment vehicle to make false or misleading statements to, or otherwise to defraud, investors or prospective investors in that pool. The rule will apply to all investment advisers to pooled investment vehicles, regardless of whether they are registered under the Advisers Act. Read more from Goodwin Procter's Business Law and Financial Services Group.