Washington, D.C., April 29, 2008 (Lawfuel) – The Securities and Exchange Commission has adopted rules requiring a registered investment company (fund) to disclose when it divests, in accordance with the Sudan Accountability and Divestment Act of 2007, from securities of issuers that the fund determines conduct or have direct investments in certain business operations in Sudan. The Commission adopted the rules on April 24, 2008. The Sudan Accountability and Divestment Act required the SEC to prescribe regulations requiring this disclosure by April 29, 2008.
On Dec. 31, 2007, the President signed the Sudan Accountability and Divestment Act into law. Among other things, the Act provides that no person may bring any civil, criminal, or administrative action against any fund, or any employee, officer, director, or investment adviser of the fund, based solely upon the fund divesting from securities issued by persons that the fund determines, using credible information that is available to the public, conduct or have direct investments in certain business operations in Sudan. This limitation on actions does not apply unless the fund makes disclosures in accordance with regulations prescribed by the Commission.
The rules adopted by the Commission specify the SEC forms on which disclosure must be made and provide a transition period, ending May 14, 2008, for disclosure of divestments that occurred between Dec. 31, 2007, and April 30, 2008, the effective date of the rules.