SEC Commissioner Uyeda Addresses Adviser Pay and Closed-End Fund Rules
Commissioner Mark T. Uyeda issued a statement on proposed rule changes covering adviser performance fees, interval funds, and closed-end fund share classes.
Securities and Exchange Commission Commissioner Mark T. Uyeda released an official statement addressing a set of proposed regulatory amendments that would affect how investment advisers are compensated, how interval funds operate, and how closed-end funds and business development companies structure their share classes.
The proposals touch on performance-based compensation rules for advisers, a compensation model that ties fees to investment returns and has long drawn scrutiny from regulators concerned about potential conflicts of interest and investor protection. Changes to these rules could alter how a broad range of registered investment advisers charge clients.
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The package also includes amendments related to interval fund modernization, a category of closed-end fund that allows periodic, rather than continuous, redemptions. Interval funds have grown in popularity as retail investors seek access to alternative assets, making regulatory clarity around their structure increasingly consequential for the broader asset management industry.
Additionally, the proposed amendments address multiple share class frameworks for traditional closed-end funds and business development companies, or BDCs. Share class flexibility is a mechanism that could expand distribution options and potentially broaden the investor base for these vehicles, which often hold illiquid or private-market assets.
Uyeda's statement signals continued regulatory attention to alternative investment structures at a time when retail participation in private markets is expanding. Continue reading at Speeches and Statements.
