SEC Is Said to Prepare Easier Path for New Exchange-Traded Funds
- Chairman has asked staff to revisit 2008 proposal, people say
- Plan would address complaints over time and cost for approvals
Photographer: Joshua Roberts/Bloomberg
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U.S. Securities and Exchange Commission Chairman Jay Clayton is working to streamline the agency’s ad hoc approach to approving new exchange-traded funds, putting a spotlight on an issue that has vexed the regulator for a decade.
Clayton, who joined the SEC in May, has asked staff to build upon a proposal that was nearly adopted before the 2008 financial crisis doomed its chances, three people familiar with the matter said. A new rule would likely be welcomed by much of the mutual fund industry, which often complains about the costs and how long it takes to get the agency’s sign-off.