The Securities and Exchange Commission is mulling a once-shelved proposal that would make it easier for fund managers to launch less complex ETFs, according to a Reuters report Tuesday.
Regulators may allow firms to sidestep the tedious and time-consuming SEC application process, according to the article.
“The SEC first issued such a proposal in March 2008, but it was shelved when the deterioration of the financial markets consumed the SEC’s time,” Reuters reports. “The SEC staff is still in the early stages of developing the plan, and is unsure whether they will simply dust off the old proposal, or write a new one.”
ETF providers have grumbled about how long it typically takes to get new products approved by the SEC, as well as the costs. Last year, the SEC hired a so-called ETF Czar, fueling hopes the regulator would speed up the process. Barry Pershkow is a senior special counsel on ETFs in the SEC’s Investment Management Division, and he was previously an attorney for ETF manager ProShares. [SEC May Speed ETF Approvals]