The Securities and Exchange Commission (SEC) has been working on a rule in order to speed the approval of new exchange traded funds (ETFs). ETFs have a unique structure which don’t fit into investment regulations, therefore making the approval process long. With a record number of proposals for new ETFs, the SEC became inspired to reduce paperwork and repetitive filings.
Diya Gullapalli for The Wall Street Journal reports other SEC initiatives have included better communication for the applicants and acceptance of online applications, with the goal of doubling the number of exemptive orders for products, like ETFs, in the coming fiscal year. Such efforts are already having an impact and providers that have products in the pipeline are hearing it’s taking less time.
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