Exchange traded fund providers could see a shorter wait on ETFs receiving the green light from the Securities and Exchange Commission to launch, according to a report Wednesday.
“Common experience holds that ETF exemptive applications take at least nine months to a year if the application does not raise unique or novel issues. Active ETF applications have been known to take several years to be approved,” Ignites.com reports.
“That may be changing for so-called ‘plain vanilla’ applications. Increasingly, active ETF applications are falling into a standard format,” it added.
The SEC recently lifted a ban on derivative use in some classes of ETFs. However, asset managers trying to get approval for actively managed ETFs can still end up waiting over a year. [Active ETFs Stuck in Limbo at SEC]
Yet Ignites reports that recent evidence shows applications “are progressing at faster speeds than the traditional time line.”
“If you have an application that almost exactly matches a recently ordered application, it appears the SEC is trying to move forward quickly with those applications,” said Michael Mundt, partner at Stradley Ronon, in the article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.