Does a fund of funds have to meet the 120-day deadline for sending out its audited financial statements?
The Division has issued a letter indicating that it would not recommend enforcement action to the Commission if an adviser relying on the “audit provision” for a fund of funds distributes the audited financials to investors within180 days from the end of the fund of funds’ fiscal year. A fund of funds is a pooled investment vehicle that invests 10 percent or more of its total assets in other pooled investment vehicles that are not, and are not advised by, a related person of the pool, its general partner, or its adviser. A “related person” of an adviser includes officers, partners, directors, most employees, and anyone controlled by, controlling or under common control with the adviser. See Adopting Release at footnote 45 and the ABA Letter.
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