ADISA’s Legislative & Regulatory Co-Chair Catherine Bowman, The Bowman Law Firm, signed a letter on behalf of ADISA’s membership to the Securities Exchange Commission expressing concerns on the above release’s impact on perpetually offered real estate investment trusts (NAV REITs) and perpetually offered business development companies (NAV BDCs) which are not traded on an exchange, which redeem shares on a periodic basis at a price based on net asset value.

Typically, NAV Funds disclose the actual repurpose amounts in prospectus supplements publicly filed ahead of their periodic quarterly and annual reports, and in any event publicly disclose the repurchase amounts in their periodic reports. And the costs and burdens of complying the rule amendments by NAV Funds, as proposed, outweigh any benefits to the NAV Fund investors.

ADISA urges the Commission to exempt NAV Funds from the rule amendments proposed in the release either explicitly or by limiting the proposed rule amendments to those issuers whose shares are registered under Section 12(b) of the Securities Exchange Act.