The U.S. Securities and Exchange Commission published a notice seeking public comment on an application for exemptive relief that would permit a proposed multi-class ETF structure, allowing a single fund to offer both exchange-traded shares and traditional mutual fund shares. The proposal would narrow the regulatory separation between mutual fund and ETF share classes, with the stated aims of increasing investor choice, improving operational efficiency and tax treatment, and supporting competition where similar relief has historically been held by a single asset manager. The application includes safeguards such as board oversight, adviser reporting, conflict monitoring and investor disclosure, intended to preserve core protections under the Investment Company Act. The notice reflects the SEC’s preliminary determination to grant the requested relief, subject to public comment and the opportunity for a hearing, and does not represent a final decision.
U.S. Securities & Exchange Commission 2025-09-29
U.S. Securities and Exchange Commission seeks comment on exemptive relief for a multi-class fund structure combining ETF and mutual fund shares
The U.S. Securities and Exchange Commission seeks public comment on an application for exemptive relief to allow a multi-class ETF structure, enabling a single fund to offer both exchange-traded and mutual fund shares. The proposal aims to enhance investor choice, operational efficiency, and tax treatment, with safeguards like board oversight and conflict monitoring. This notice indicates the SEC's preliminary determination to grant relief, pending public input.