The SECs proposal to require money managers to electronically file plain-English descriptions of their business practices has been published on the agencys website, at www.sec.gov/rules/proposed/2008/ia-2711.pdf. The site has the full text of the long-awaited proposed revisions of the Part 2 Form ADV brochures which would give potential clients immediate Internet access to information about the kinds of services each manager provides, fees charged and potential conflicts of interest. Though much of the same information is now required in existing paper versions of Part 2 Form ADV, the existing form is in check-the-box format and is not filed electronically or available on the agencys website. Comments on the SECs proposed revisions will be accepted through May 16.
Separately, the SEC announced today a proposed rule that would pre-empt the need for indexed ETFs and fully transparent active ETFs to seek individual approval before operating. John Heine, an SEC spokesman, said the public would have 60 days to comment after the proposal is published in the Federal Register, but he said it was unclear when the proposal would be published. The SEC recognizes the important role ETFs are playing in investor portfolios and the need to streamline the approval process, said Edward Giltenan, a spokesman at the Investment Company Institute, Washington.