Comment letters on the SEC’s proposed rules for limiting leverage in registered funds (Premium)
In December 2015, the US Securities and Exchange Commission proposed rule 18f-4 limiting the amount of leverage that registered funds could use. Funds could either use a portfolio limit of 150% total exposure or a risk-based limit based on VaR plus a maximum exposure of 300%. The rule would impact 32% of all funds that currently report to the SEC. We review the comment letters that have begun to roll in.