The Securities and Exchange Commission is considering applications from several investment companies seeking to deregister under the Investment Company Act of 1940 as they have stopped operations. These companies have either distributed their assets or transferred them to other funds, with some incurring liquidation or reorganization expenses, often covered by investment advisers or related parties. Various applications were filed or amended in 2020 and 2021, with the companies seeking orders to cease being recognized as investment companies. Some entities, like American Independence Funds Trust and Boston Income Portfolio, have requested official deregistration following the liquidation of their assets.
Simple Explanation
The Securities and Exchange Commission is looking at requests from some investment companies that want to stop being investment companies because they’ve closed down and given out their money to people. Sometimes they had to spend money to close down, and other times their helpers paid for it.