Skip to main content

Investment Company Act Section 18(i)

May 27, 2020

Today, the Staff of the Division of Investment Management issued a statement (the “Staff Statement”) addressing certain aspects of the intersection between state control-share acquisition statutes (“control share statutes”) and the voting requirements of section 18(i) of the Investment Company Act of 1940.[1]  I thank the staff for continuing their retrospective review of prior staff statements and documents to ascertain whether they should be modified, rescinded, or supplemented in light of market or other developments.  The Staff Statement reflects the view that any future action in this area should be taken by the Commission, and it requests public input about whether additional Commission action in this area is necessary or appropriate.[2]  I look forward to reviewing any future staff recommendations that result from that input.

In addition, I echo the staff’s reminder to market participants that any actions taken by a board of a fund, including with regard to control share statutes, must be consistent with the board’s fiduciary obligations to the fund and applicable federal and state law provisions based on the particular facts and circumstances surrounding the board’s action.


[1] Control Share Acquisition Statutes, Staff Statement, Division of Investment Management (May 27, 2020), available at

[2] Statement regarding SEC Staff Views (Sept. 13, 2018), available at

Return to Top