Cboe Frees New Funds from Yearly Meetings: Investors Get a Break
Published Date: 6/6/2025
Notice
Summary
Starting May 20, 2025, certain closed-end investment companies listed on the Cboe BZX Exchange won’t have to hold annual shareholder meetings anymore. This change affects new listings from that date forward, making things simpler and potentially saving money on meeting costs. It’s a smart update that keeps things efficient without cutting corners on investor protections.
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Newly Listed Closed‑End Funds: No Mandatory Annual Meeting
If you own or plan to buy shares in a closed-end fund that lists on the Cboe BZX Exchange on or after May 20, 2025, that fund would not be required by Exchange Rule 14.10(f) to hold an annual shareholder meeting. Funds listed on or after May 20, 2025 can still choose to include annual meeting requirements in their bylaws, and the 1940 Investment Company Act protections would continue to apply.
Potential Cost Savings and IPO Market Effects
The Exchange states eliminating the annual meeting requirement for funds listed on or after May 20, 2025 could remove annual meeting costs that range from $32,000 to $761,000 per fund and thereby lower expense ratios for retail shareholders. The Exchange also says this change could help re-open the listed closed-end fund IPO market and generate capital formation.
Funds Transferring Keep Annual Meeting Duty
Closed-end funds that transfer to the Cboe BZX Exchange from another listing exchange will continue to be required to hold annual shareholder meetings under Exchange Rule 14.10(f). Existing closed-end funds already listed elsewhere won't lose their exchange-mandated annual meeting obligations if they move to BZX.
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