Key Takeaways
- • Brian Daly, director of the SEC's Division of Investment Management, urged sponsors of regulated alternative funds to consider exchange listings and position-level portfolio disclosure, citing wider retail access and better price discovery, in remarks at Stanford on Oct. 16.
- • Daly called the concept "ticker-ization" and said the SEC is "actively encouraging sponsors of regulated alts funds to provide position-level transparency."
- • The encouragement is separate from the SEC's Sept. 30 proposed rules, which do not require sponsors to list funds or disclose individual holdings.
- • The Sept. 30 proposals would cap certain performance-based fees at 20% of net capital gains or appreciation, require independent board oversight, and set comment periods of 60 days after Federal Register publication.
- • A Sept. 21 SEC order allowing ARK Venture Fund a tokenized share class applies only to that fund and does not create a general tokenization framework.
Summary
Brian Daly, director of the SEC's Division of Investment Management, urged sponsors of regulated alternative funds to consider exchange listings and portfolio disclosures, arguing these steps could widen retail access and improve price discovery. Speaking at Stanford on Oct. 16, Daly framed the effort around access, transparency and incentives, saying exchange trading could help investors and market intermediaries assess a fund's value, with potential benefits for liquidity. He described the concept as "ticker-ization" and said the agency is "actively encouraging sponsors of regulated alts funds to provide position-level transparency."
Daly's remarks are distinct from the SEC's Sept. 30 package of proposed rules, which does not require fund sponsors to list their funds or disclose individual holdings. One proposal would cap certain performance-based fees at 20% of a regulated fund's net capital gains or net capital appreciation over a specified period or on specified dates, and calls for independent board oversight and a board finding that the arrangement serves the fund and its shareholders' best interests. Other proposals would update interval-fund repurchase rules, establish a rules-based process for multiple share classes in regulated closed-end funds, and require certain fund forms to disclose performance-based compensation. The proposals build on the SEC's earlier push to widen individual access to private markets, and their comment periods run 60 days after publication in the Federal Register.
A Sept. 21 SEC order offers one example of tokenized fund shares. It allows ARK Venture Fund to offer an exchange-listed share class and a separate tokenized share class that may trade on alternative trading systems or be quoted on other venues. The order applies only to that fund and does not establish a general tokenization framework.
President Donald J. Trump's 2025 executive order includes actively managed investment vehicles that invest in digital assets within its definition of alternative assets, and directs the SEC, in consultation with the Department of Labor, to consider ways to facilitate access through participant-directed defined-contribution plans. The order does not require retirement plans to offer particular investments, and Daly's remarks did not announce a crypto-specific rule.
The discussion comes after several large private-credit managers received retail-fund redemption requests in early 2026 above their repurchase limits. The requests led to prorated withdrawals, with some unfilled requests carried forward.
Daly's remarks are distinct from the SEC's Sept. 30 package of proposed rules, which does not require fund sponsors to list their funds or disclose individual holdings. One proposal would cap certain performance-based fees at 20% of a regulated fund's net capital gains or net capital appreciation over a specified period or on specified dates, and calls for independent board oversight and a board finding that the arrangement serves the fund and its shareholders' best interests. Other proposals would update interval-fund repurchase rules, establish a rules-based process for multiple share classes in regulated closed-end funds, and require certain fund forms to disclose performance-based compensation. The proposals build on the SEC's earlier push to widen individual access to private markets, and their comment periods run 60 days after publication in the Federal Register.
A Sept. 21 SEC order offers one example of tokenized fund shares. It allows ARK Venture Fund to offer an exchange-listed share class and a separate tokenized share class that may trade on alternative trading systems or be quoted on other venues. The order applies only to that fund and does not establish a general tokenization framework.
President Donald J. Trump's 2025 executive order includes actively managed investment vehicles that invest in digital assets within its definition of alternative assets, and directs the SEC, in consultation with the Department of Labor, to consider ways to facilitate access through participant-directed defined-contribution plans. The order does not require retirement plans to offer particular investments, and Daly's remarks did not announce a crypto-specific rule.
The discussion comes after several large private-credit managers received retail-fund redemption requests in early 2026 above their repurchase limits. The requests led to prorated withdrawals, with some unfilled requests carried forward.
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