March 2, 2022
The proposed definition of substantially similar pool of assets included in the proposed rule on preferential treatments refers to any pooled investment vehicles and excludes separately managed accounts (SMAs). As noted by the SEC, granting preferential treatments may materially and negatively impact investors and this concern extends to SMAs. By design, SMAs are typically not pooled investment vehicles, but offer preferential liquidity and portfolio transparency to their owners. We believe the proposed regulation should extend to any investment vehicle, pooled or not, including SMAs, that have substantially similar investment strategies.