SEC Proposes Big Overhaul to Interval, Closed-End Funds and Adviser Fees
The SEC has unveiled new rules that could reshape how interval and closed‑end funds operate and how advisers structure performance fees.
On September 30, 2026, the U.S. Securities and Exchange Commission released two proposals targeting the Investment Company Act of 1940. First, the “Interval Fund Release” would amend Rules 23c‑3, 18f‑3, and 17d‑3, and related forms, to increase transparency and protect investors in interval funds by tightening disclosure requirements and broadening the range of permissible investment strategies. Second, the SEC would revise closed‑end fund share‑class mechanics, aiming to improve liquidity and align shareholder interests. The third pillar addresses investment adviser performance‑fee rules, proposing stricter limits on management fee calculations to curb excessive fee structures. These changes are still in the proposal stage, but they are likely to affect a wide spectrum of funds, investors, and advisers. Firms advising fund managers should closely monitor the comment period and prepare for potential adjustments to fund prospectuses and fee schedules.