SEC Proposes Rules to Allow Index-Based and Fully Transparent Actively Managed ETFs

At an open meeting on Tuesday, March 4, the Securities and Exchange Commission (SEC) voted unanimously to propose two new rules under the Investment Company Act of 1940 (Act) to permit exchange-traded funds (ETFs) to operate without the need to obtain individual exemptive orders from the SEC. The SEC also proposed amendments to disclosure Form N-1A to include additional information for ETF investors who purchase shares in the secondary markets.

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