A clear sense of urgency has emerged across the asset management industry. Product innovation is accelerating, regulatory expectations are evolving, and asset managers, boards and service providers are being challenged to keep pace. At the recent ICI Investment Management Conference in California, one theme came through consistently: the conversation has shifted from whether innovation should be allowed to how it can be implemented responsibly.
For accounting and advisory professionals supporting investment funds, these developments carry important implications. Beyond governance and disclosure considerations, there is a clear need for operational readiness and reporting complexity. Below are five of the most notable takeaways from this year’s conference, and what they may mean for your organization.
One of the most discussed topics was the growing push to provide retail investors with access to private market investments. Regulatory momentum picked up following an executive order issued on August 7, 2025, which catalyzed changes in the retirement landscape. Since then, certain rules have been rescinded, new proposals introduced and regulators have signaled a willingness to revisit long-standing limitations.
Importantly, the current emphasis is not on speculative, standalone private market products. Instead, regulators are focused on modest, diversified allocations within traditional investment vehicles, particularly in retirement accounts. If finalized, these changes could:
For asset managers, this trend raises critical questions around valuation, liquidity management and clear disclosure. In these areas, strong accounting and advisory support will be essential.
Another encouraging development is a noticeable shift toward more collaborative and pragmatic regulation. There is increasingly broad support for regulatory modernization. There is also particular emphasis on approaches that acknowledge today’s market structure, technological realities and evolving investor demographics.
Several recurring themes include:
Representatives from the SEC highlighted active focus areas, including:
For fund boards and service providers, these developments underscore the importance of staying engaged and proactive rather than reactive — particularly as regulatory expectations continue to evolve.
ETF innovation remains one of the most dynamic areas in the industry. As of early 2026, there have been 89 filings for ETF share classes, reflecting the growing interest in flexible ETF structures. In addition, 2025 marked a notable milestone: active ETFs surpassed passive ETFs in number, reinforcing that ETFs are no longer simply a low-cost indexing tool.
While growth shows no signs of slowing, conference discussions made it clear the challenges facing advisers and sponsors are increasingly operational rather than conceptual. Today’s ETF innovation is less about novelty and more about execution, with a focus on:
Strategic conversations are now centered on how firms move into ETFs — whether through ETF share classes, mutual fund-to-ETF conversions or standalone ETF launches. Each path introduces distinct accounting, reporting and operational complexities that must be evaluated carefully.
For sponsors navigating these changes, several practical considerations stand out:
Boards and fiduciaries play a critical role in overseeing innovation. Key expectations of these entities and individuals include:
Strong governance remains essential as products become more complex and investor expectations continue to rise.
The asset management industry has always been a catalyst for innovation, but the pace of change today is markedly faster. Regulatory dialogue is evolving, product structures are expanding and operational excellence is becoming a differentiator.
The message from the ICI conference was clear: innovation is no longer a theoretical exercise. The question is no longer “Should this be allowed?” but, rather, “How do we do this responsibly?” For asset managers, boards, and their accounting and advisory partners, success will depend on thoughtful planning, disciplined execution and a clear focus on investor outcomes.
Contact Deborah Hogan or a member of your service team to discuss this topic further.
In this blog Cohen & Co is not rendering legal, accounting, investment, tax or other professional advice. Rather, the information contained in this blog is for general informational purposes only. Any decisions or actions based on the general information contained in this blog should be made or taken only after a detailed review of the specific facts, circumstances and current law with your professional advisers.