FS Credit Opportunities Corp. v. Saba Capital Master Fund, Ltd. · ¶24

While the Securities and Exchange Commission is the ICA’s main enforcer, the Act also expressly authorizes two private rights of action. Since 1970, the ICA has allowed security holders to sue investment advisers for breaches of fiduciary duty. §80a–35(b) (“An action may be brought . . . by a security holder of [a] registered investment company on behalf of such company” for breach of fiduciary duty against certain members of the company). This provision also details how the right of action should operate: It assigns burdens of proof, caps damages, and specifies a forum. Ibid. The ICA also incorporates an express right of action from the Securities Exchange Act, which allows an issuer of securities to recover certain short-term profits realized by a regulated individual. §80a–29(h) (incorporating §78p(b), which permits “[s]uit to recover” such profits). These provisions demonstrate that…

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