ICI Submits Letter in Response to OMB's Request for Information on Deregulation

In April, the Office of Management and Budget (OMB) issued a request for information on deregulation.[1] The RFI seeks comment on "regulations that are unnecessary, unlawful, unduly burdensome, or unsound" and specifically asks commenters to identify rules to rescind.

Today, ICI filed a letter (linked below) in response, in which we strongly support this initiative as a vitally needed corrective to recent agency rulemaking activity (particularly that of the SEC and DOL). We focus on rules and guidance that we would like to see the SEC and DOL rescind or adopt, while referencing generally our broader policy priorities.[2]

With respect to rules or guidance to rescind, we recommend that the SEC or staff:

• Reconsider and repeal some or all of the 2023 fund names rule amendments;
• Modify the 2024 Form N-PORT amendments;
• Streamline notification requirements for distributions by funds;
• Allow closed-end funds to more flexibly invest in private funds; and
• Rescind antiquated SEC guidance on senior securities for closed-end funds and allow issuers to follow the plain language of the statute. 

We also reiterate our other SEC policy priorities that we had previously communicated to SEC Chairman Atkins in April:[3]

• Restoring the ability of funds to cross trade fixed-income securities;
• Reforming the fund proxy system;
• Updating requirements for in-person voting by fund directors;
• Adopting electronic delivery of information as the default delivery option;
• Enabling a new or existing fund to offer both mutual fund and ETF share classes;
• Allowing closed-end funds to more flexibly invest in private funds;
• Updating the framework for fund co-investments; and
• Removing the annual shareholder meeting requirement for listed closed-end funds.

We recommend that DOL:

• Reform the qualified professional asset manager (QPAM) exemption and roll back amendments to the prohibited transaction exemption (PTE) procedures; and
• Rescind the 2024 fiduciary rulemaking package.

Finally, we note that we intend to submit separate comments on the Treasury and IRS Priority Guidance Plan.[4]

Matthew Thornton
Associate General Counsel

Notes

[1] Request for Information: Deregulation, Executive Office of the President, Office of Management and Budget (OMB) ("RFI"), 90 Fed. Reg. 15481 (Apr. 11, 2025).

[2] See Reimagining the 1940 Act, Key Recommendations for Innovation and Investor Protection, ICI (March 2025).

[3] See ICI's Letter to SEC Chairman Atkins (Apr. 11, 2025).

[4] See Public Recommendations Invited on Items to be Included on the 2025-2026 Priority Guidance Plan, Notice 2025-19.