SEC Extends Rule Allowing Cheap Trades Between Fund Affiliates
Published Date: 3/26/2026
Notice
Summary
The SEC is asking for comments to keep a special rule that lets investment funds trade securities with their related companies without paying extra fees. This rule helps funds save money by avoiding unnecessary commissions and makes sure prices stay fair. If you’re involved with investment companies or their affiliates, this extension keeps things running smoothly with no new costs or deadlines.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Funds May Cross-Trade Without Commissions
If you run or are affiliated with a registered investment company, Rule 17a-7 allows purchases and sales between affiliated funds or affiliates that arise solely from a common adviser, director, or officer so the funds can avoid brokerage commissions. The rule also limits prices for those transactions to prevent unfair pricing that could harm a participating fund.
Board Records, Quarterly Reviews, Six-Year Retention
If you manage a fund relying on Rule 17a-7, the fund's board must adopt and permanently keep written procedures, make and record a determination at least quarterly that affiliated transactions complied with those procedures, and keep written records of each Rule 17a-7 transaction for not less than six years. The SEC estimates about 446 funds use the rule, about 5 hours of recordkeeping per respondent, a total annual internal burden of about 2,230 hours, and annual external costs of $1,659,120.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-12163 — The Trade-Through Rule and Locked and Crossed Markets Provisions of Regulation NMS
The SEC wants to scrap some old rules that stop stocks from being traded at worse prices and prevent confusing market quotes. This change affects stock traders and exchanges, aiming to simplify trading and possibly speed things up. If you want to share your thoughts, you’ve got until August 17, 2026, so don’t miss out!
2026-10373 — Registered Offering Reform
The SEC wants to make it easier and cheaper for more companies to sell their stocks and bonds to the public. They’re opening up special forms and benefits to more businesses, updating rules to be more modern, and cutting red tape by overriding some state rules. If you’re a company planning to raise money, these changes could speed things up and save you money, with feedback due by July 27, 2026.
2026-10222 — Enhancement of Emerging Growth Company Accommodations and Simplification of Filer Status for Reporting Companies
The SEC is making it easier for companies that report their finances by simplifying their categories into just two groups: big and small filers. Smaller companies, including emerging growth ones, will get more time to file reports and enjoy simpler rules, while big companies keep stricter standards. These changes aim to save time and money, with feedback open until July 20, 2026.
2026-07651 — Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-13824 — Datum One Series Trust and Polar Capital LLP
Datum One Series Trust and Polar Capital LLP want to create a new kind of investment fund that offers both exchange-traded shares (like ETFs) and regular mutual fund shares all in one fund. This change could make investing easier and more flexible for people using these funds. If no one asks for a hearing by July 31, 2026, the SEC will likely approve this new setup soon.
2026-13816 — Agency Information Collection Activities; Proposed Collection; Comment Request; Extension: Rule 15b9-1
The SEC is asking for comments to extend a rule that affects brokers and dealers who trade stocks. If they trade off an exchange they belong to, they usually have to join a special group called an Association, but some exceptions apply. This keeps trading fair and safe without adding extra costs or paperwork for most folks.
Previous / Next Documents
Previous: 2026-05890 — KEI (Maine) Power Management (III) LLC; Notice of Application Ready for Environmental Analysis and Soliciting Comments, Recommendations, Terms and Conditions, and Prescriptions
KEI (Maine) Power Management wants to keep running their Barker Mill Upper Hydroelectric Project on the Little Androscoggin River in Auburn, Maine. The government is now reviewing their application and asking the public to share thoughts or concerns by May 22, 2026. This process helps make sure the project stays safe and eco-friendly while continuing to provide power.
Next: 2026-05892 — Agency Information Collection Activities; Submission for OMB Review; Comment Request; Extension: Form N-3
The SEC is asking to keep using Form N-3, which helps certain investment companies register and share important info about variable annuity contracts with investors. This extension means no big changes or new costs, but companies using this form should keep filing on time to stay in the game. The deadline for comments is coming up soon, so don’t miss your chance to speak up!