2026-10820NoticeWallet

SEC Keeps 80-Percent Name Rule for Investment Funds

Published Date: 6/1/2026

Notice

Summary

The SEC is asking for comments to extend a rule that stops investment funds from using tricky names. If a fund’s name says it focuses on certain investments or offers special tax benefits, it must actually put at least 80% of its money there. This keeps fund names honest and helps investors know what they’re really getting, with no new costs or deadlines yet.

Analyzed Economic Effects

3 provisions identified: 2 benefits, 1 costs, 0 mixed.

Fund names must match 80% rule

If a fund’s name says it focuses on a type of investment, industry, region, or that its distributions are tax-exempt, the fund must adopt a policy to invest at least 80% of its assets in those investments. The rule applies to registered investment companies and business development companies (BDCs).

Recordkeeping and compliance costs for funds

Funds that adopt an 80% policy must keep written records documenting compliance for no less than six years, with the first two years kept in an easily accessible place. The SEC estimates an average annual recordkeeping burden of 75 hours per fund and estimates about 10,855 funds would be subject to the 80% policy requirement.

60-day notice before name or policy change

Funds that adopt the 80% policy may make that policy fundamental or, for most funds, must give shareholders at least 60 days’ prior notice before changing the policy or changing the fund’s name that accompanies the policy change. This notice gives shareholders time to decide whether to redeem shares.

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Key Dates

Published Date
6/1/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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