SEC proposes safe harbor for R&D companies

The U.S. Securities and Exchange Commission on Tuesday proposed a new rule that would "modernize the test that R&D companies use in determining their status" under the Investment Company Act to Act. According to the SEC, in some cases when an R&D company with few tangible assets purchases a non-controlling securities position in another R&D company, it "may inadvertently fall within the definition of investment company." Investment companies are subject to disclosure requirements and must comply with restrictions on corporate structure that do not apply to other types of companies. ...