On May 18th, 2011, the SEC approved FINRA’s proposal to change the effective date of the new “anti-spinning rule” for New Issues (Rule 5131) to September 26, 2011 from May 27, 2011 (see our February 14, 2011 memo on Rule 5131). This change will allow our investment management clients additional time to contact their existing investors to determine their status under Rule 5131 and to implement any necessary changes to their offering, subscription and/or charter documents. To the extent these steps have already been taken, there is no further action required. If you have any questions regarding Rule 5131, please contact your principal attorney in the Investment Management Group at Seward & Kissel LLP.
