Australia's market regulator, the Australian Securities and Investment Commission, announced Tuesday a halt to further listings of active exchange-traded funds while it conducts a review of "regulatory settings" for the fast-growing market segment.
A spokesman said ASIC is looking to be in a position to reach conclusions by the end of 2019. He declined to predict how soon new listings could be allowed.
An ASIC news release said the regulator "has requested that exchange market operators do not admit any managed funds that do not disclose their portfolio holdings daily and have internal market makers while it undertakes a review during the remainder of this calendar year."
The spokesman said there are currently 11 active ETFs listed on the Australian Securities Exchange.
The news release said existing funds "are not impacted" by the suspension of new listings.
The news release noted recent substantial growth for actively managed funds, with "internal market-making funds" having grown to 6% of funds under management in exchange-traded funds. The spokesman couldn't immediately provide comparative figures for the previous year or two.
The news release likewise noted that the U.S. and Hong Kong have recently seen regulatory approval given for "alternative frameworks."