Securities and Exchange Commission Issues Notice for Exemption Request

Strategic Insights -

The Securities and Exchange Commission has issued a notice requesting public input on an application filed by Morgan Stanley Pathway Funds and Consulting Group Advisory Services LLC seeking an exemption from shareholder approval for subadvisory agreements and relief from certain disclosure requirements under the Investment Company Act of 1940. The application, which was filed on April 11, 2025, and amended on May 29, 2025, and June 4, 2025, would allow the applicants to enter into and materially amend subadvisory agreements without shareholder approval and grant relief from disclosure requirements related to fees paid to subadvisers. The Commission invites interested persons to submit written comments, and may hold a hearing if it determines that one is necessary.

Key Takeaways:

  • The Securities and Exchange Commission has issued a notice requesting public input on an application for an exemption from shareholder approval for subadvisory agreements and relief from certain disclosure requirements.
  • The application, filed by Morgan Stanley Pathway Funds and Consulting Group Advisory Services LLC, would allow the applicants to enter into and materially amend subadvisory agreements without shareholder approval.
  • The relief from disclosure requirements would pertain to fees paid to subadvisers, as specified by sections 6-07(2)(a), (b), and (c) of Regulation S-X.
  • Interested persons may request a hearing on the application by emailing the SEC's Secretary or serving the Applicants with a copy of the request.
  • The deadline for submitting hearing requests is August 11, 2025.
  • Persons who wish to be notified of a hearing may request notification by emailing the Commission's Secretary.

Statistics:

  • The application was filed on April 11, 2025, and amended on May 29, 2025, and June 4, 2025.
  • The application has been assigned a file number, which may be used to search for the file on the Commission's website.
  • The deadline for submitting written comments is 30 days from the date of publication in the Federal Register.
  • The Commission may hold a hearing if it determines that one is necessary.

Sources:

  • [Securities and Exchange Commission; Notice of an application under section 6(c) of the Investment Company Act of 1940 for an exemption from section 15(a) of the Act, as well as from certain disclosure requirements] [FR Doc. 2025-13681 Filed 7-18-25; 8:45 am]