Tuesday, November 20, 2012
SEC Adopts Rule Establishing Credit Quality Standard to Replace Credit Rating Reference in Investment Co. Act Exemption
The SEC adopted a new rule under the Investment Company Act to establish a standard of credit-worthiness in place of a statutory reference to credit ratings that the Dodd-Frank Act removes. The rule will establish the standard of credit quality that must be met by certain debt securities purchased by entities relying on the Investment Company Act exemption for business and industrial development companies. The rule becomes effective 30 days after publication in the Federal Register.