The new rule would permit ETFs to operate without the need to
obtain individual exemptive orders from the US Securities and
Exchange Commission.
At an open meeting1 on Thursday, June 28, the
US Securities and Exchange Commission (SEC) voted unanimously to propose Rule 6c-11 (Rule)
under the Investment Company Act of 1940 (1940 Act), as well as
amendments to Forms N-1A, N-8B-2, and N-CEN.
As we continue to review the proposal, we wanted to share some of its
highlights:
Applicability
The Rule would only be available to ETFs organized as open-end
funds. ETFs organized as unit investment trusts (UITs), ETFs
structured as a share class of a multi-class fund, and leveraged or
inverse ETFs would not be able to rely on the Rule and instead
would continue to operate under their existing exemptive orders.
Existing leveraged ETFs and ETFs organized as UITs would, however,
be subject to the proposed amendments to Forms N-1A and N-8B-2,
which are designed to provide
