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B-335664 Oct 24, 2023 1 (2023-10-24)

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                      U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC  20548

B-335664

October 24, 2023

The Honorable Sherrod Brown
Chairman
The Honorable Tim Scott
Ranking Member
Committee  on Banking, Housing, and Urban Affairs
United States Senate

The Honorable Patrick McHenry
Chairman
The Honorable Maxine Waters
Ranking Member
Committee  on Financial Services
House  of Representatives

Subject: Securities and Exchange Commission: Investment Company Names

Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule
promulgated by the Securities and Exchange Commission (SEC) titled Investment Company
Names  (RIN: 3235-AM72).  We received the rule on September 21, 2023. It was published in the
Federal Register as a final rule on October 11, 2023. 88 Fed. Reg. 70436. The effective date is
December  11, 2023.

According to SEC, it is amending a rule under the Investment Company Act of 1940 that addresses
certain broad categories of investment company names that are likely to mislead investors about
an investment company's investments and risks. See Investment Company Act, ch. 686, title I,
54 Stat. 789 (1940). SEC stated that the amendments to this rule are designed to increase investor
protection by improving, and broadening the scope of, the requirement for certain funds to adopt a
policy to invest at least 80 percent of the value of their assets in accordance with the investment
focus that the fund's name suggests, updating the rule's notice requirements, and establishing
recordkeeping requirements. SEC also stated that it is also adopting enhanced prospectus
disclosure requirements for terminology used in fund names, and additional requirements for funds
to report information on Form N-PORT regarding compliance with the names-related regulatory
requirements.

Enclosed is our assessment of SEC's compliance with the procedural steps required by
section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. If you have any questions about
this report or wish to contact GAO officials responsible for the evaluation work relating to the subject
matter of the rule, please contact Shari Brewster, Assistant General Counsel, at (202) 512-6398.






Shirley A. Jones
Managing Associate General Counsel

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