US - The Securities and Exchange Commission (SEC) would require investment companies to disclose when they divest from companies that have links to Sudan, under proposals released for consultation today.
The act provides civil, criminal, or administrative action cannot be brought against any registered investment company, based solely upon its divestment from securities issued by persons that conduct or have direct investments in certain business operations in Sudan. The investment company can determine those links using credible information available to the public.
However, this limitation on actions does not apply unless the investment company makes disclosures in accordance with regulations prescribed by the SEC.
The commission proposes to require each registered investment company that divests securities in accordance with the act to disclose the divestment on the next Form N-CSR or Form N-SAR (forms that registered investment companies currently use to file periodic reports) that it files following the divestment.
Management investment companies would provide the disclosure on Form N CSR, and unit investment trusts would provide it on Form N-SAR.
The proposed amendments would require disclosure of the issuer's name; exchange ticker symbol; CUSIP number; total number of shares or, for debt securities, principal amount divested; and dates that the securities were divested.
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