SEC Extends Foreign Fund Paperwork Shuffle, Business as Usual
Published Date: 8/13/2025
Notice
Summary
The SEC is extending the paperwork rules for foreign investment funds, especially Canadian ones, that want to sell their shares in the U.S. These funds must keep filing certain agreements and info to prove they follow U.S. laws and protect investors. No big changes or costs are coming, but the SEC wants your comments before the extension happens.
Analyzed Economic Effects
5 provisions identified: 1 benefits, 4 costs, 0 mixed.
Estimated Annual External Compliance Cost
The SEC estimates the total external annual cost burden to comply with Rule 7d-1 is $5,256 (costs such as legal and accounting services).
Estimated First-Year Start-Up Capital Cost
If a Canadian or other foreign fund applied to register under Rule 7d-1, the Commission estimates initial capital and start-up costs of about $20,000 in the first year for preparing documentation, custodian arrangements, copying/transportation, and equipment for U.S. recordkeeping.
Foreign (Canadian) Funds Must File Detailed Contracts
If you run a foreign investment fund (especially a Canadian fund) that wants to register to sell shares in the U.S., you must file an application under Rule 7d-1 that includes undertakings and agreements. Those filings include agreements with directors, officers, and service providers, an irrevocable designation of a U.S. custodian as agent for service of process, charter and bylaw provisions requiring records be kept in the United States, contracts requiring compliance with U.S. securities laws, and a periodic list of affiliated persons.
Estimated Initial Time Burden for Applications
The Commission estimates that if a fund files an application under Rule 7d-1 to register, the initial information-collection tasks (application, charter/bylaw/contract provisions, agent designations, initial affiliated-person list, and establishing U.S. recordkeeping) would take approximately 90 hours for the fund and its associated persons.
Opportunity To Comment Before Extension
The SEC is seeking public comments on this information collection and invites stakeholders to submit comments by September 15, 2025. The request covers the necessity, burden estimates, and ways to reduce the collection burden.
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