SEC Extends Comment Period for Rule 0-1 Independent Counsel Requirements

The Securities and Exchange Commission has extended the public comment period for its information-collection request concerning Rule 0-1, the definition of terms used in the Investment Company Act of 1940. Interested parties may submit comments through the RegInfo website or by email by October 13, 2026, thirty days after the notice's publication on September 11, 2026.

Rule 0-1 provides the definition of "independent legal counsel" and sets the conditions under which a fund may rely on any of ten exemptive rules. When a fund's counsel has represented the fund's investment adviser, principal underwriter, administrator, or their control persons within the past two years, a majority of the board's independent directors must determine that the representation was sufficiently limited to avoid adverse effects on the counsel's judgment. The determination and its basis must be recorded in the board's meeting minutes, and the independent directors must obtain an undertaking from counsel to update the information promptly. Re-evaluation must occur at least annually.

The SEC estimates that approximately 920 funds will need to make the required determination. The agency projects an internal record-keeping burden of about one hour per fund, totaling roughly 920 hours annually, with no external cost anticipated.

The collection is submitted under the Paperwork Reduction Act with OMB Control No. 3235-0531 and appears in the Federal Register as FR Doc No. 2026-18532. The notice states that a valid OMB control number is required for any collection of information and that the records are not submitted to the Commission but may be reviewed by staff upon request.

Compliance with Rule 0-1 is a prerequisite for funds to obtain or retain benefits under the exemptive rules, reinforcing the SEC's focus on mitigating conflicts of interest between funds and their management organizations.