The 3C1 is a section of the Investment Company Act of 1940 ("Investment Company Act"). This act, which includes both Section 3C1 and 3C7, regulates the registration and activities of investment companies and is enforced by the SEC. Section 3C1 allows for the exclusion of investment companies from standard SEC registration requirements if they have fewer than 100 investors and do not propose to make a public offering of its securities. These companies to which Section 3c1 applies are often referred to as private investment companies. Some examples of Section 3C1 exclusions are broker-dealers, charitable organizations, pension plans, and church plans. Section 3C1, as with Section 3C7, is commonly used among hedge fund companies since Section 3C1 helps them avoid certain requirements of the SEC. |
