The Securities and Exchange Commission has announced that it will hold hearings on December 11 to “consider whether to propose a new rule and amendments to certain proposed forms related to the use of derivatives by registered investment companies and business development companies.” This move is not unexpected as the SEC has long been concerned with how funds’ use of derivatives might affect compliance with leverage restrictions, and raise issues with fund portfolio diversification, concentration, and valuation. In 2011, the SEC issued a concept release seeking input on these very issues.