Brown Advisory Funds has filed an application with the Securities and Exchange Commission (SEC) seeking an order of exemption under the Investment Company Act of 1940. This application, submitted on October 30, 2026, aims to allow the company to bypass certain provisions of the Act, specifically Section 15(a), which governs investment advisory agreements. This exemption could significantly enhance the operational efficiency of Brown Advisory Funds by enabling its adviser to select and amend investment subadvisory agreements without needing shareholder approval.

Brown Advisory Funds is a registered open-end management investment company organized as a Delaware statutory trust. The firm operates under a multi-manager structure, offering multiple series of shares, each representing a distinct fund. The adviser, Brown Advisory LLC, plays a crucial role in managing the funds, which are sold through a registration statement on Form N-1A. The board of trustees overseeing the trust consists of six members, four of whom are independent trustees.

The SEC filing outlines that the company is seeking to exempt itself from certain disclosure obligations under various rules and forms, including specific items from Form N-1A and the Securities Exchange Act of 1934. The relief sought is similar to exemptions previously granted to other investment companies, which could set a precedent for future applications in the industry.

This move may have implications for the investment management industry at large. If granted, the exemption could allow Brown Advisory Funds to operate more flexibly, potentially influencing competitors to consider similar applications to streamline their own processes. The ability to select and amend subadvisory agreements without the delay of shareholder meetings could enhance the responsiveness of investment strategies.

As for what comes next, the filing does not specify any immediate actions or timelines following the application. Stakeholders and industry observers will likely be keen to see how the SEC responds to this request and whether it will approve the exemption sought by Brown Advisory Funds.