The Securities and Exchange Commission voted Thursday to adopt a new rule aimed at facilitating more competition and innovation in the ETF marketplace.
The updated rule is aimed at modernizing regulation of exchange-traded funds with a more consistent framework applicable for the vast majority of ETFs operating today, and leading to more choice for investors, the SEC said in a statement.
With the change, ETFs will be able to come to market more quickly without the need to seek individual exemptive relief. Mr. Clayton said in a statement that since ETFs were introduced more than 27 years ago, "they have provided investors with a number of benefits, including access to a wide array of investment strategies, in many cases at a low cost."
"As the ETF industry continues to grow in size and importance, particularly to Main Street investors, it is important to have a consistent, transparent, and efficient regulatory framework that eliminates regulatory hurdles while maintaining appropriate investor protections," he said.
The new ETF rule and form amendments will be effective 60 days after publication in the Federal Register, with a one-year transition compliance period for the form amendments. One year after the effective date of the rule, the commission will rescind exemptive relief already granted to certain ETFs.