The 1940 Act is the key regulatory regime for interval funds.  This provides critical protections for investors.  DLA Piper released a handbook discussing the 1940 Act and related statues and regulations that apply to and otherwise bear on the interval fund operations. The information covers the key regulatory framework for 40 Act Funds, as well as the impact of recent regulatory changes.
According to DLA Piper:

 ….an interval fund can be a suitable vehicle in which to run “alternative” strategies – i.e., strategies that are designed to produce returns that are not highly correlated to the broader stock and bond markets. Interval funds also mesh well with certain noteworthy regulatory initiatives – for example, FINRA’s new customer statement rule (RN 15-02), and the Department of Labor’s fiduciary rule and accompanying BIC exemption – making them attractive vehicles for use by independent broker dealers and other financial advisors that must operate within the complex regulatory environment.

Additionally, Griffin Capital, which operates the Institutional Access Credit Fund, and the Institutional Access Real Estate Fund, provided some detail on interval fund operations in its whitepaper, Understanding Interval Funds:

The investment adviser manages the interval fund’s portfolio according to the objective outlined in the fund prospectus. An administrator oversees the operational performance ensuring it complies with regulatory requirements. Governance is provided by a board of trustees to help ensure money is being managed per the fund’s stated objectives. An independent accounting firm performs annual audits and certifies the fund’s financial statements.

Additionally, Griffin provided a graphic showing the key actors involved in the operating an interval fund:

Additional Resources

For additional information on how interval funds operate, due diligence information, see Research Resources

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