The Securities and Exchange Commission published a notice for an application seeking exemption from certain requirements of the Investment Company Act of 1940. This exemption would allow ETF Series Solutions and Distillate Capital Partners LLC to make changes to sub-advisory agreements without needing shareholder approval and to consolidate fee disclosures. The goal is to enable the investment adviser to select and manage sub-advisers more efficiently, benefiting the shareholders by potentially reducing costs. Additionally, the application outlines conditions to protect shareholder interests and seeks to maintain transparency by informing shareholders of significant changes via a streamlined notification process.
Simple Explanation
ETF Series Solutions and Distillate Capital Partners want special permission from the government to make some changes without asking people who invest in them, like picking helpers to manage money. They promise to tell the investors important things in a simpler way, hoping to save money and help everyone.