On September 26, 2019, the Securities and Exchange Commission
(the SEC) adopted a final rule under the Investment Company Act of
1940 (the "Investment Company Act") that will enable most
exchange-traded funds ("ETFs") to operate without an
exemptive order, subject to various conditions ("Rule
6c-11").1 Among other things, Rule 6c-11 will
rescind certain exemptive orders that it issued previously to ETFs
and ETF sponsors, replace those orders with a standard ETF
framework and establish new disclosure requirements for ETFs that
rely on the rule.
Here, we summarize the highlights of Rule 6c-11 and also
summarize the new disclosure requirements that will apply to
ETFs.2
On October 24, 2019, the Federal Register published Rule 6c-11,
which will become effective December 23, 2019. The compliance date
for the amendments to Form N-1A is December 22, 2020, one year
following the effective date.
