Multi-Class ETFs: SEC Grants Conditional Relief, Completing Regulatory Framework

On March 17, 2026, the SEC granted important regulatory relief for broker-dealers and other market participants engaging in transactions involving exchange-traded shares of a Multi-Class ETF. At the same time, the staff of the SEC’s Division of Trading and Markets issued a no-action letter for broker-dealers that effect an in-kind creation or redemption transaction on behalf of customers involving the ETF Shares of a Multi-Class ETF. This relief, requested by the Investment Company Institute, is substantially similar to the relief previously granted in 2019 for ETFs operating under Rule 6c-11 of the Investment Company Act, but specifically addresses the unique structure of Multi-Class ETFs.

While implementation will no doubt involve certain challenges and complexities, given our broad fund industry contacts and unmatched ETF operational expertise, Ropes & Gray is well positioned to help Funds, their sponsors and their Boards and other Fund industry participants navigate them. Please reach out to your regular Ropes & Gray contact or contact us at [email protected] if you would like to discuss the Relief or any of the topics discussed in this whitepaper.

Read the White Paper