Core Insights - The government shutdown may significantly impact new fund launches and pending mutual fund/ETF dual share applications, potentially affecting financial advisors' revenue due to postponed investment decisions [1][4] Group 1: Impact on Fund Launches - The SEC Division of Investment Management will operate with reduced staff during the shutdown, leading to delays in approvals for new filings and a backlog for ETFs, particularly those with alternative strategies [2][3] - While fund launches will not be completely halted, a prolonged shutdown will slow down the pipeline, especially for proposals with novel strategies and those from less established asset managers [4] Group 2: Exemptive Relief Delays - The shutdown is likely to delay the granting of exemptive relief for asset managers seeking mutual fund/ETF dual shares, which require more complex resolutions than regular fund launches [5] - Asset managers involved in these applications will face stand-stills, unable to respond to comments or secure final effectiveness until full SEC staff review resumes [5] Group 3: Pre-existing Challenges - Prior to the shutdown, the SEC was already experiencing staff reductions due to earlier budget cuts, which had begun to affect the review timelines for new interval funds [6]