SEC Grants Exemptive Relief From Rule 15c2-11 For Rule 144a Fixed-Income Securities

November 3, 2023

On October 30, 2023, the Securities and Exchange Commission issued an order, available here, that provides exemptive relief to brokers-dealers from the requirements of Rule 15c2-11 under the Securities Exchange Act of 1934, as amended with respect to fixed-income securities that are sold in compliance with Rule 144A. Fixed-income securities are securities in which an investor provides funds to a corporation, securitization SPV, or a government in return for the payment of interest and the return of principal. Unlike the relief granted by prior SEC staff no-action letters related to the application of Rule 15c2-11, this exemptive relief is not time limited. It will be in effect unless and until the SEC modifies or revokes its exemptive order, or it is superseded by future SEC rulemaking.

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