The changes aren’t in place yet, though, and any changes may not be immediately apparent. After the SEC makes its proposal, there will be a period for public comment. The Commission will then analyze that input and make a decision based on that. "The new rule will likely impact those sponsors seeking to get in the ETF business in 2009 or later," says McGuire. It could also affect providers already in the business who are looking to add to their ETF lineups.
If the new rules go into effect, McGuire says it could free up staff to focus on new products that don’t fit the current models, and it will also make it easier for fund groups to enter the ETF business. "Either of these things could lead to more, and more innovative, ETFs."
The meeting at which the SEC will make its recommendations for the new rules will take place next Tuesday.