On June 28, 2018, the Securities and Exchange Commission ("SEC") considered whether to adopt an exchange traded fund ("ETF") specific rule to permit certain ETFs to launch more easily and quickly.
Currently, all ETFs are regulated under the Investment Company Act of 1940 (the "Act") and need to seek an SEC exemption from the Act known as "exemptive relief" in order to sell funds. Among its changes, the new rules would permit certain ETFs to by-pass exemptive relief and instead hold them to more generic release standards, such as minimum liquidity levels.
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This article was written with contributions from Tim Moore.