The Securities and Exchange Commission (SEC) has revised the rules related to investment in mutual funds under management of the same asset management company to enhance flexibility for efficient investment management and to ensure consistency with the Regulatory Guillotine* guidelines without compromising appropriate investment protection.
Currently, asset management companies have established mixed funds with more diversified asset allocation to meet different demands of investors and to enhance efficiency for managing investment in each type of assets.
In this regard, asset management companies may choose to invest in mutual funds that concentrate on a specific type of assets and require specific expertise of fund managers to ensure economy of scale for such investment management.
In addition, asset management companies view that the existing rules that allow management of mutual…
