The Securities and Exchange Commission has published a notice of an application for an order that would allow certain investment companies to participate in a joint lending and borrowing facility. This facility would enable participating funds to lend money directly to, and borrow money directly from one another, to cover unexpected cash shortfalls. The facility aims to offer reduced borrowing costs and enhanced returns on loaned funds, benefiting both borrowing and lending funds. The application, submitted by Symmetry Panoramic Trust and Symmetry Partners, LLC, seeks specific exemptions from various sections of the Investment Company Act of 1940 to implement this interfund lending facility.
Simple Explanation
The Securities and Exchange Commission has shared a plan where some banks want to share pocket money with each other so they can help when one of them runs low, making sure they all have enough and save money at the same time.