January 27, 2008 at 1:00 pm by Tom Lydon
Exchange traded funds (ETFs) could benefit from a proposed new set of rules from mutual fund industry regulators. Andrew Donohue of the Securities and Exchange Commission (SEC) said he hoped to address changes to 12b-1 fees, used for marketing and distribution expenses.
Judith Burns for Dow Jones NewsWires reports that the changes to the fees would cut down on printed information provided by the fund companies, which would have the added benefit of saving trees.
The proposed rules could expand the number of ETFs available. Donohue wants to propose a rule that would allow the funds to be offered without requiring sponsors to obtain relief from parts of U.S. securities laws or rules. He said regulators don’t want to "micromanage" ETFs.
Donohue also hinted that the SEC’s approval of actively managed ETFs could be coming soon.
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