SEC Commissioner Uyeda Backs Adviser Fee and Fund Rule Revisions
Commissioner Mark T. Uyeda issued a statement supporting proposed SEC rule changes covering adviser performance fees, interval funds, and closed-end fund share classes.
Securities and Exchange Commission Commissioner Mark T. Uyeda released a formal statement in support of proposed amendments targeting three distinct areas of investment management regulation: adviser performance-based compensation, interval fund modernization, and multiple share class structures for closed-end funds and business development companies.
The proposals would update rules governing how investment advisers can charge performance-based fees, a compensation structure tied to portfolio returns that has long been subject to regulatory thresholds and eligibility requirements. Modernizing those standards has been a priority for segments of the asset management industry seeking greater flexibility in structuring client agreements.
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The interval fund component of the rulemaking addresses operational and disclosure requirements for a category of registered closed-end fund that offers periodic — rather than continuous — liquidity to investors. Interval funds have grown in popularity as vehicles for accessing less-liquid alternative asset classes, prompting calls for updated regulatory frameworks to reflect current market practices.
The multiple share class provision would extend to traditional closed-end funds and BDCs a structural option already common in open-end mutual funds, potentially broadening distribution channels and investor access. BDCs, which lend to and invest in small and mid-size businesses, have increasingly sought parity with other registered fund types on structural flexibility.
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