SEC Proposes More Flexible Repurchase Rules for Interval Funds
The SEC proposed giving interval funds more room to schedule share repurchases. The Commission said the proposal, along with a companion proposal on performance fees, would widen retail access to private market strategies while keeping investor protections.
The proposal would amend Rule 23c-3. Interval funds could (i) defer the first repurchase offer up to two years, (ii) offer monthly repurchases, (iii) make discretionary offers yearly instead of every two years, and (iv) deduct deferred sales loads.
A principles-based liquidity standard would replace the requirement to hold liquid assets equal to 100 percent of the offer.
Closed-end funds could also issue multiple share classes by rule. The SEC would rescind all but one of the related exemptive orders.
SEC Chair Paul Atkins said the proposal is designed to modernize, enhance, and simplify the interval fund framework. Commissioner Hester Peirce, whose resignation from the SEC takes effect October 2, 2026, supported the proposal but questioned whether it would narrow the gap between closed-end fund prices and net asset value.
Comments are due 60 days after Federal Register publication.