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Auditor independence rules would change under a newSEC proposal designed to permit relationships in situations when independence is not substantially threatened.

If adopted, the proposed amendments to the independence rule (Rule 2-01) would:

• Amend the definitions of affiliate of the audit client, in Rule 2-01(f)(4), and Investment Company Complex, in Rule 2-01(f)(14), to address certain affiliate relationships, including entities under common control;
• Amend the definition of the audit and professional engagement period, specifically Rule 2-01(f)(5)(iii), to shorten the lookback period for domestic first-time filers in assessing compliance with the independence requirements;