SEC proposes rules to make ETF research easier for broker-dealers

Chairman Jay Clayton says proposal would increase investors' access to research

May 25, 2018 @ 11:20 am

By Hazel Bradford

The Securities and Exchange Commission proposed rules Wednesday that would make it easier for brokers or dealers to publish research on mutual funds, exchange-traded funds and business development companies without worrying about it being considered a sales offer.

The proposed rules would create a safe harbor similar to an existing one for research reports about other public entities.

SEC Chairman Jay Clayton said the proposal would reduce obstacles to providing research on investment funds by harmonizing the treatment of such research with research on other public entities. "The proposed changes are intended to provide investors with greater access to research to aid them in making investment decisions," he said in a statement.

The rule-making was mandated by the Fair Access to Investment Research Act of 2017 enacted Oct. 6. At the time, the Securities Industry and Financial Markets Association, the industry group representing broker-dealers, banks and asset managers, called it "common-sense legislation" that recognized outdated regulation. "As the ETF market continues to grow, this bill's clarifications will allow broker-dealers to produce more research on ETFs, provide consumers with greater access to information and contribute to capital formation," the SIFMA statement said.

The proposal is open for 30 days of public comment before being finalized.

(More: Clayton: SEC left 'fiduciary' out of new advice rule to avoid investor confusion)


What do you think?

View comments

Recommended for you

Featured video


What's behind the TCA, ETrade deal?

Deputy editor Bob Hordt talks with senior columnist Jeff Benjamin about what each party in the recent acquisition stands to gain by joining forces.

Latest news & opinion

What's in a name? For TCA by ETrade, everything

Trust Company of America is gone, and there's big buzz over the name change. But turning the custodian into an industry powerhouse will take a lot longer — if it happens at all.

When it comes to regulating AI in financial services, murky waters are ahead

Laws are unclear on how the technology fits in with compliance.

As Ameriprise case shows, firms on hook when brokers go bad ​

The SEC will collect $4.5 million from the brokerage firm for failing to supervise brokers who were ripping off clients.

10 highest paid professions in America today

These are the top-paying jobs in the U.S., according to Glassdoor.

Ameriprise to pay $4.5 million to settle SEC charges that five reps stole more than $1 million from clients

Agency censures firm for not protecting clients from thieving brokers.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print