HFMWeek Quotes JP Bruynes on SEC Derivatives Proposal

JP Bruynes, a partner in the investment management practice at Akin Gump, has been quoted in the HFMWeek article “Experts warn SEC plans would hit alt mutual funds hard” regarding new SEC proposals on regulations for derivatives. The SEC recently proposed Rule 18f-4, which would, according to the article, limit derivatives use in mutual funds alongside strict asset segregation rules.

Bruynes commented that the rule could be “potentially very bad for managed futures mutual funds. Managed futures mutual funds are still a somewhat nascent asset class so it would be a real shame for them to be nipped in the bud.” He added, “If the regulation is adopted as proposed and managed futures funds are unable to adapt, then the SEC could be cutting off access for retail investors to a whole asset class.”