Regulatory Uncertainty Hampering Active ETF Product Development

Shishir Nigam submits:

Interest in the Active ETF space from fund companies is not lacking. There are now in excess of 25 companies who have filings with the SEC to launch actively-managed ETFs in the US. And these are not just small shops looking to experiment in a new space, these are big financial players like BlackRock iShares, JP Morgan, State Street, John Hancock and T. Rowe Price who have shown their clear interest by applying for exemptive relief to launch Active ETFs. However, what is turning many of these potential players off is the cloud of regulatory uncertainty that has been hanging over the Active ETF space. The SEC launched its investigation into derivative usage in Active ETFs back in March 2010, and has since made no clear comments on its final stance regarding actively-managed ETFs. The potential for adverse regulatory action is keeping many issuers on the sidelines and even those who have already filed a

By admin posted about 1 year ago

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