May 24, 2018/US SEC

SUMMARY:As directed by Congress pursuant to the Fair Access to Investment Research Act
of 2017, the Commission is proposing new rule 139b under the Securities Act of 1933. If
adopted, the proposal would establish a safe harbor for an unaffiliated broker or dealer
participating in a securities offering of a “covered investment fund” to publish or distribute a
“covered investment fund research report.”

If the conditions for the safe harbor are satisfied, this publication or distribution would be deemed not to be an offer for sale or offer to sell the covered investment fund’s securities for purposes of sections 2(a)(10) and 5(c) of the Securities Act of 1933.

The Commission is also proposing new rule 24b-4 under the Investment Company Act of 1940. Proposed rule 24b-4 would exclude a covered investment fund research report from the coverage of section 24(b) of the Investment Company Act (or the rules and regulations thereunder), except to the extent the research report is otherwise not subject to the content standards in self-regulatory organization rules related to research reports, including those contained in the rules governing communications with the public regarding investment companies or substantially similar standards.

We are also proposing a conforming amendment to rule 101 of Regulation M.
DATES: Comments should be received by [insert date 30 days after publication in the
Federal Register].

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