ICI Sees Major Step Forward for Nontraded Closed-End Funds with SEC’s Interval Repurchase and Multiple Share Class Proposal
Washington, DC; September 30, 2026—Today, Investment Company Institute (ICI) President and CEO Eric J. Pan issued the following statement in response to the Securities and Exchange Commission’s (SEC) vote to propose amendments under the Investment Company Act of 1940 (1940 Act) concerning repurchase offers for interval funds and multiple share classes for regulated unlisted closed-end funds and business development companies (BDCs):
“We welcome the SEC’s proposal of new rules that would give interval funds more flexibility to provide repurchase opportunities and expand the ability of unlisted closed-end funds and BDCs to offer multiple share classes. Greater flexibility around repurchase offers could help interval funds align those offers with their portfolio holdings and investment strategies. Additionally, expanding access to multiple share classes will give unlisted closed-end funds and BDCs a clearer path to market and offer investors more choice.
“ICI called for these reforms in our Reimagining the 1940 Act white paper, as they advance the interests of individual investors. The 1940 Act was crafted to evolve with markets, and its rules should continue to serve the more than 120 million Americans who invest in regulated funds. These reforms from the SEC do just that.
“We thank SEC Chairman Paul Atkins and the Commission staff for taking up these recommendations. We look forward to reviewing the proposal in detail and working with the SEC on finalizing it.”
Background
In March 2025, ICI released Reimagining the 1940 Act: Key Recommendations for Innovation and Investor Protection, a blueprint developed over three years with input from ICI members and legal experts. Two principles guided the work: the core regulatory framework remains fundamentally sound, and any changes should advance the interests of individual investors.
Among its recommendations, ICI called for greater flexibility for closed-end funds to provide repurchase opportunities and for continuously offered closed-end funds to offer multiple share classes.
Read the full report with ICI’s recommendations for reform here.