Global Trustee and Fiduciary Services Bite-Sized Issue 10 2026

17 AIFMD CRYPTOASSETS FINTECH FUND LIQUIDITY OPERATIONAL RESILIENCE SUSTAINABLE FINANCE/ ESG T+1 ASIA PACIFIC EUROPE NORTH AMERICA UNITED KINGDOM Global Trustee and Fiduciary Services Bite-Sized | Issue 10 | 2026 Quick Links • Market-based finance • Sustainable finance • Financial innovation Link to ESMA Report on Trends, Risks and Vulnerabilities No. 2, 2026 here NORTH AMERICA SEC Proposes Amendments to Expand Responsible Retailization of Private Markets and Seeks Public Comment on Additional Ways to Qualify as an Accredited Investor On 30 September 2026, the Securities and Exchange Commission (SEC) issued two proposing releases designed to expand retail investor choice and facilitate capital formation in the public and private markets by promoting innovation in regulated fund structures – i.e., registered management investment companies and business development companies – while maintaining appropriate investor protections and safeguards. Investment Adviser Performance-Based Compensation Modernization The SEC says that the proposal would expand the ability of investment advisers to regulated funds to receive performance-based compensation calculated on the basis of capital gains or capital appreciation of a regulated fund’s account. The following conditions must be satisfied: • The performance-based compensation does not exceed 20% of the regulated fund’s net gains over a specified period; • The regulated fund satisfies Rule 0-1(a)(7) under the Investment Company Act (“fund governance standards”); and • The regulated fund’s board, including a majority of independent directors, determines that the performance-based compensation arrangement is in the best interest of the regulated fund and its shareholders, and the board makes specific findings regarding the arrangement’s appropriateness, structure, and investor protection features. The SEC says that the proposal would amend certain registration and reporting forms to require disclosure of performance-based compensation. Additionally, the SEC says that the proposed amendments would also revise the qualified client definition to include investors that meet the accredited investor definition in Regulation D under the Securities Act and would remove the separate net worth test and assets under management test from the qualified client definition. Interval Fund Modernization The proposal would amend Rule 23c-3 under the Investment Company Act to provide greater flexibility to interval funds, including by: • Permitting extended deferral of the first repurchase offer; • Permitting more frequent discretionary repurchases; • Permitting monthly periodic intervals; • Permitting the deduction of deferred sales loads from repurchase proceeds, subject to certain conditions; • Simplifying and clarifying the process of determining the repurchase pricing date and treatment of oversubscribed repurchase offers; and • Amending the requirements of the rule that specify that an interval fund must hold a certain amount of liquidity and replace it with a principles-based liquidity approach.