Industry News
SEC tells fund shops to follow DFA's amended ETF share class application
Tania Mitra / Apr 09, 2025
Per correspondence with the SEC this week, asset managers can expect swift approval of their applications after DFA's approval.
In its latest comments to asset managers applying for ETF share classes to be tacked onto their mutual funds, the Securities and Exchange Commission (SEC) has asked applicants to follow Dimensional Fund Advisors’ (DFA) amended filing.
According to attorney Joe Mannon, chair of the private fund formation group at Vedder Price, applicants for the dual structure received comments from the SEC this week, noting the same issues highlighted in DFA’s most recent filing. Mannon represents some of the firms that currently have active share class applications.
‘The SEC has indicated that if our clients amend their application to track the DFA changes then such applications will be approved in short order after the DFA application is approved,’ he said.
Earlier this month, DFA submitted an amended application to address the SEC’s concerns, primarily around how this structure could negatively impact ETF share class holders if cash flows in other classes impacted a fund’s portfolio, thereby generating...
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Apr 18, 2025
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