Liquid Alternatives: Ultimus’ Clients Are Among the First to Market With ETFs Under Rule 6c-11

Ultimus Fund Solutions helped advisers get a competitive edge.

The SEC’s Rule 6c-11 has been almost universally lauded for the advantages it provides asset managers, advisers, and investors. Under the rule, asset managers will no longer be required to file for exemptive relief under the Investment Company Act of 1940 for each new ETF application, explaining why they were different from mutual funds. The new rule essentially makes it clear that in the view of the SEC, ETFs are different investment vehicles compared to mutual funds.

So long as they comply with the SEC’s conditionalities, asset managers can launch a new ETF. Rule 6c-11 became effective on December 23, 2019, and fund administrators Ultimus Fund Solutions have been quick off the mark. (Yahoo! Finance)

New ETFs launched, guided by Ultimus

Ultimus helped two of its adviser clients launch active transparent exchange-traded funds (ETFs) in accordance with new Rule 6c-11.

“Our tenured team of ETF professionals were able to interpret and implement the new regulations quickly and effectively,” said Larie Lydick, Vice President, Head of ETFs for Ultimus. “Our preparedness allowed our clients to be some of the first ETFs to market under Rule 6c-11 – providing them with a valuable competitive advantage.”

Rule 6c-11 a win-win

Quotable Quotes:

“The entire ETF industry has lived by exception for 26 years,” said Dave Nadig, managing director of to ThinkAdvisor. “Now it will live by rule. This just cleans up the status quo and levels the playing field rather than resetting the rules of the game.”

It was “long overdue,” said Ben Johnson, director of global exchange-traded fund research at Morningstar. “The SEC has finally assembled an eggshell around a 26-year-old chicken.”


The fund administrator said in its announcement that key benefits of Rule 6c-11 for advisers included reduced time to market, lower legal costs and the facility to use custom baskets.

Ultimus offers fund administration, accounting and investor solutions for funds, pensions, endowments, foundations, and other institutions.

Related Story: Liquid Alternatives: Advisers Sitting on Trillions of Dollars of Potential ETF Investments – Report                                                  

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