Staff Grants No-Action Relief Finding That a Strategic Alliance Will Not Constitute a Change of Control of an Adviser for Purposes of the Investment Company Act of 1940
This memorandum discusses the recent no-action position taken by the Securities and Exchange Commission in connection with a strategic alliance involving a 45% equity investment in a registered investment adviser by a bank holding company, agreeing that such investment would not cause a change of control resulting in an “assignment” under the Investment Company Act of 1940 of the adviser’s advisory agreements with registered investment companies.