Multi-Class ETF Fund Exemptive Relief Under the Investment Company Act of 1940
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The SEC has issued a notice of applications from multiple fund families seeking exemptive relief under the Investment Company Act of 1940. The relief would allow registered open-end investment companies to operate as Multi-Class ETF Funds, offering both an exchange-traded ETF Class of shares and one or more non-exchange-traded Mutual Fund Classes within the same legal entity. This structure requires two types of relief: standard ETF operational relief consistent with Rule 6c-11 and additional ETF Class Relief to permit the coexistence of ETF Shares and Mutual Fund Shares. The notice covers applications from 14 different fund groups including Franklin Templeton, Goldman Sachs, Columbia, Delaware, and others. Orders would be granted unless a hearing is ordered. Hearing requests must be received by April 20, 2026.
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Key Changes
- Permits registered open-end funds to offer both ETF Shares and Mutual Fund Shares in the same fund
- Provides ETF Operational Relief consistent with Rule 6c-11 under the 1940 Act
- Grants additional ETF Class Relief to allow coexistence of exchange-traded and non-exchange-traded share classes
+ 3 more changes with Pro
Obligations
What this law requires
Registered open-end investment companies must obtain SEC exemptive relief under section 6(c) of the Investment Company Act of 1940 before operating as Multi-Class ETF Funds offering both ETF Class shares and Mutual Fund Class shares within the same legal entity
Multi-Class ETF Fund applicants must obtain exemptions from sections 2(a)(32), 5(a)(1), 18(f)(1), 18(i), 22(d), and 22(e) of the Investment Company Act of 1940 and Rule 22c-1
Multi-Class ETF Fund applicants must obtain exemptions from sections 17(a)(1) and 17(a)(2) of the Investment Company Act of 1940 under sections 6(c) and 17(b)
Interested persons requesting a hearing on a Multi-Class ETF Fund application must submit the request to Secretarys-Office@sec.gov by 5:30 p.m. Eastern time on April 20, 2026, including the applicable file number
Hearing requests must be accompanied by proof of service on applicants in the form of an affidavit or certificate of service