The SEC proposed a new rule and form amendments to modernize the regulations surrounding exchange-traded funds (ETFs). ETFs that satisfy certain conditions would be able to operate within the scope of the Investment Company Act of 1940 and to come to market without applying for individual exemptive orders. The aim of the proposal is to facilitate competition and innovation in the ETF marketplace by lowering barriers to entry and would replace hundreds of individualized exemptive orders.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.