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June 21, 2018 at 02:42 PM
(Photo: National Law Journal)
The U.S. Securities and Exchange Commission has set a date to consider a new rule that would speed the process of bringing an ETF to market.
On June 28, the SEC will discuss whether to propose regulations that would allow asset managers to sell certain types of exchange-traded funds without first gaining its approval, according to the commission’s agenda. Under current rules, wannabe ETF issuers must get SEC permission — a process known as exemptive relief — before selling funds under the Investment Company Act of 1940.
It’s wonky stuff, but the new regulation has the potential to significantly shake up the $3.6 trillion U.S. ETF market. Currently, the industry’s 80-plus issuers all operate under different orders that have inadvertently given some firms a competitive advantage. ETF advocates have been lobbying the SEC to level the playing field for years. Regulation that would have done it was first killed more than a decade ago.
