News & Analysis as of

Mutual Funds

Mayer Brown Free Writings + Perspectives

Understanding the Spectrum of Permanent Capital Vehicles

Asset management vehicles, especially those regulated under the Investment Company Act of 1940 (the 1940 Act), are frequently painted with a broad brush and described as having the same or virtually indistinguishable...more

Seward & Kissel LLP

SEC Issues Combined Notice to 30 Applicants Allowing for ETF Class

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Who may be interested: Registered Investment Companies; Directors of Registered Investment Companies; Investment Advisers - Quick Take: The SEC’s Division of Investment Management has granted preliminary approval to 30...more

Barnea Jaffa Lande & Co.

Israel Securities Authority Regulates Online Advertising: Mutual Funds, Likes, Influencers, and Everything in Between

Barnea Jaffa Lande & Co. on

The Israel Securities Authority published a new staff position recently on the regulation of advertising in digital space (including on social networks), focusing on advertising relating to mutual funds. The staff position...more

BCLP

From “Gotcha” to Guidance: SEC’s 2026 Examination Priorities Emphasize Cooperation

BCLP on

On November 17, 2025, the Division of Examinations (the “Division”) of the U.S. Securities and Exchange Commission (the “SEC”) published its annual 2026 Examination Priorities (the “Exam Priorities”). The Exam Priorities are...more

Katten Muchin Rosenman LLP

FINRA Case Involving Gifts and Entertainment

On October 21, the Financial Industry Regulatory Authority (FINRA) filed a settled enforcement action involving allegedly improper gifts and entertainment in connection with sales of mutual fund shares. The $10 million fine...more

Seward & Kissel LLP

SEC Issues Order for DFA Exemptive Application, Opening the Door to ETF Share Classes

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Who may be interested: Investment Companies; Investment Advisers; Boards of Directors - Quick Take: Following the notice of intent to grant relief in September, and having received no request for a public hearing into the...more

Vedder Price

SEC Set to Approve ETF Share Class Exemptive Relief

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On September 29, 2025, the SEC issued a notice of an amended application for an exemptive order to permit the applicant open-end management investment companies registered under the Investment Company Act of 1940 to offer a...more

Morgan Lewis

ETF Share Class Toolkit: Preparing for Changes to the Registered Fund Marketplace

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As the government shutdown concludes, it is expected the SEC will promptly issue an exemptive order for Dimensional Fund Advisors LP to offer open-end funds with one class of exchange-traded fund shares and one or more...more

Venable LLP

ETF Share Classes in Maryland Corporations and Statutory Trusts

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The Securities and Exchange Commission recently issued a notice regarding intended exemptive relief (the “Notice”) that would permit an open-end management investment company (referred to herein as an “open-end fund”)...more

Morgan Lewis

California Market-Based Sourcing Regulation Impacts Asset Managers and Taxpayers with Receipts from Services and Intangibles

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After nearly a decade of development, the California Franchise Tax Board promulgated changes to its market-based sourcing regulation for sales of other than tangible personal property. The amended regulation is particularly...more

K&L Gates LLP

Is the Industry Ready for an ETF Share Class?

K&L Gates LLP on

Introduction - On 29 September 2025, the US Securities and Exchange Commission (SEC) issued notice of an exemptive application filed by Dimensional Fund Advisors LP, et al. (Dimensional) seeking relief (Relief) to offer...more

Seward & Kissel LLP

What Registered Funds, including ETFs and Mutual Funds Need to Know

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Who may be interested: Registered Investment Companies; Investment Advisers, Closed-End Funds - Quick Take: As of 12:01 a.m. on October 1, 2025, Congress was unable to pass a continuing resolution to fund U.S. federal...more

Vedder Price

Broker-Dealer Settles FINRA Enforcement Proceeding Regarding Mutual Fund Rights of Reinstatement

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In August 2025, a broker-dealer settled an enforcement proceeding brought by FINRA regarding the broker-dealer firm’s alleged failure to apply mutual fund sales charge waivers and fee rebates. According to the letter of...more

Vedder Price

Investment Services Regulatory Update - September 2025

Vedder Price on

Class Action Lawsuits Claim That Funds’ Undistributed Income and Gains Are Effectively Liabilities - In recent months, shareholders of several equity mutual funds have filed class action lawsuits in New York and Delaware...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

401(k) Mutual Fund Fees Hit Historic Lows—Again

The Investment Company Institute (ICI) just confirmed what many of us have seen on the ground: 401(k) mutual fund fees keep dropping, and that’s great news for plan participants....more

Vedder Price

SEC Settles Charges Against Fund Advisers and Portfolio Managers for Alleged Misrepresentations of Risk and Breaches of Fiduciary...

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On June 30, 2025, the SEC announced it had obtained final judgments in federal district court in a lawsuit brought against two affiliated investment advisers and their two portfolio managers for breaches of fiduciary duty and...more

Vedder Price

SEC Agrees to Dismiss First Liquidity Rule Enforcement Action

Vedder Price on

On July 11, 2025, the SEC announced the filing of a joint stipulation in the U.S. District Court for the Northern District of New York, agreeing to dismiss, with prejudice, its first-ever enforcement action under Rule 22e-4...more

Goodwin

Supreme Court to Resolve Circuit Split Over Existence of Implied Private Right of Action Under Section 47(b) of the Investment...

Goodwin on

On June 30, 2025, the Supreme Court granted certiorari in FS Credit Opportunities Corp. v. Saba Capital Master Fund, Ltd., agreeing to resolve a circuit split over whether private parties have an implied right of action to...more

Ary Rosenbaum - The Rosenbaum Law Firm P.C.

Get the lowest share price possible

Here’s that in Ary Rosenbaum’s voice — clear, direct, with a personal anecdote to drive the point home: I’ve talked a lot about institutional share classes, revenue sharing, and the alphabet soup of fund share classes....more

Ropes & Gray LLP

Navigating the Complexities of ETF Share Class Integration: Key Operational Challenges and Industry Insights

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One of the most talked about topics in asset management is the possibility of offering Mutual Fund and ETF Classes in the same Fund. For fund sponsors and service providers looking to offer this service, there are significant...more

Ropes & Gray LLP

Overview of ETF Share Class Operational Issues

Ropes & Gray LLP on

One of the most talked about topics in asset management is the possibility of offering Mutual Fund and ETF Classes in the same Fund. It appears that Funds may obtain the Relief necessary to offer these Share Classes in the...more

Ropes & Gray LLP

Preparing for ETFs as a Share Class: Updated and Expanded as of June 11, 2025

Ropes & Gray LLP on

Introduction - On March 17, 2025, Ropes & Gray published a white paper describing the much-anticipated Share Class Relief 1 and outlining matters we believed Advisers and Boards may want to consider in connection with...more

K&L Gates LLP

Europe: Ireland Agrees Mutual Recognition of Funds Framework With Hong Kong

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The Central Bank of Ireland (CBI) and the Securities and Futures Commission of Hong Kong (SFC) entered into a Memorandum of Understanding on 14 May 2025 establishing a framework for the mutual recognition of funds (MRF)...more

Carey Olsen

Cayman Islands investment funds - Spring 2025 update

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Our investment funds team outline the latest developments within the investment funds market in the Cayman Islands, including the further changes to the Beneficial Ownership Regime, recent regulatory publications, CIMA annual...more

Stikeman Elliott LLP

CIRO Publishes Phase 5 of its Rule Consolidation Project

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The Canadian Investment Regulatory Organization (“CIRO”) has published for comment Phase 5 of its rule consolidation project (the “Rule Consolidation Project”). Phase 5 involves rules relating to outsourcing and service...more

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