Interval Fund Modernization; Expansion of Multiple Share Class to Registered Closed-End Management Investment Companies and Business Development Companies

The SEC is proposing to amend the rule under the Investment Company Act of 1940 governing interval funds, which are registered closed-end funds and business development companies that make periodic share repurchase offers to shareholders pursuant to a fundamental policy. The proposed amendments would modernize the interval fund framework by increasing flexibility in the repurchase offer process and allowing interval funds to better match the liquidity profile of their portfolio. The proposal also would permit regulated closed-end funds to issue multiple share classes, generally consistent with existing exemptive rules for registered open-end funds and proposes to rescind related exemptive orders.