Product Development
Legal organization of a new retail mutual fund or a non-registered investment vehicle can be time consuming and expensive, with many opportunities for stumbles. Retaining a law firm to handle the process start to finish unassisted by a fund administrator can triple the cost. Nottingham has shepherded the organization process for over 250 funds using various fund structures according to the client’s needs. Our in-house legal, compliance and regulatory expertise can save you time, money and perhaps most important, missteps in the process. Our specialty is the consultative organization of investment products.
The Process
Nottinghamâs product development process begins with an extensive consultation during which we dive into your goals and expectations for a new product. We start by looking at investment strategy, instruments that will be utilized, and target markets. Through a series of time-tested questions, we help the client determine what investment fund structure is most appropriate to meet the stated goals and expectations. These questions serve a dual purpose as they also provide the framework for the fundâs disclosure documents.
Our in-house legal team will work with the client to prepare draft documents, which are submitted to outside legal counsel for review. Final submission of the disclosure documents to the appropriate regulating authority marks the beginning of a waiting period during which much âbehind the scenesâ work takes place. We can help you define and begin to implement a marketing approach and kick off conversation and negotiation with and on broker-dealer platforms. Other tasks for completion prior to launch include, but are certainly not limited to:
- Document revisions to include final comments/changes from the SEC
- Establish custody account
- Obtain CUSIPs and Nasdaq symbol(s)
- Blue Sky registration
- Manage execution of selling and platform distribution agreements
- File post-effective with SEC
For ETFs, the process is essentially the same. Nottingham also coordinates and manages:
- Establishing ETF(s) on an Exchange
- Securing Lead Market Maker
- Establishing agreements with Authorized Participants (APs), and, as applicable, index
- Assistance with service provider contract negotiations, including Auditor and iOPV agent
Trust Solutions
Nottingham works with prospects who see the potential in working in a Series Trust environment, those who wish to organize their own Trust, or fund families that are currently in another series trust but are looking for a more cost efficient or relationship-oriented opportunity.
There are pros and cons for each fund structure, which we can talk you through. A general comparison of the two structures can be found here. The registration process for a new fund product is generally the same, however, a new Trust will likely take slightly longer for the SEC to recognize.
Learn more about Nottinghamâs private-label ETF services.
In light of the SECâs ETF Rule 6c-11, can a private-label provider still be a value-add? We believe so. This podcast explains why.
Create or Convert Your Fund Structure Today
If you are considering migrating your fund from one series trust to another, converting your fund structure from a mutual fund to an ETF, or simply changing administrators, we can help. Our dedicated team will work to ensure a transition that is both seamless to your investors and economical for your firm with the end goal being a more responsive, transparent, efficient experience.
Nottingham News
What boards need to know about mutual fund-to-ETF conversions
Fund Directions Naimish Keswani July 9, 2021 Mutual fund sponsors this year have successfully converted their products into ETFs for the first time since the Securities and Exchange Commission approved the ETF rule in 2019, eliminating the
Mutual Fund – ETF Conversion Primer
By Matt Baskir While total mutual fund assets under management still outnumber ETF assets by a few multiples, there has been a lot of attention on the relative growth of ETFs. ETFs may be more
Nottingham Welcomes Seasoned Industry Professionals
Rocky Mount, NC | July 01, 2021 09:04 AM Eastern Daylight Time Nottingham is pleased to announce the addition of three seasoned industry professionals to key positions within the Nottingham complex. Brandon Byrd joins Nottingham