SEC lifts ceiling for PowerShares ETFs

Investment companies will now be able to invest in the company’s ETFs beyond the limits of Section 12(d)-1.
AUG 30, 2007
By  Bloomberg
PowerShares Capital Management LLC, a provider of exchange traded funds, today said that it has received regulatory relief from the Securities and Exchange Commission. Now other investment companies will be able to invest in the company’s ETFs beyond the limits of Section 12(d)-1 of the Investment Company Act of 1940. Ordinarily, the regulation prevents investment firms from acquiring more than 3% of another investment company’s total outstanding voting stock and also bars them from investing more than 5% of their assets into a single investment company, or from investing more than 10% of their assets into at least two investment companies. The regulatory pass, which also applies to future ETF products launched by Chicago-based PowerShares, will require investment companies to agree to certain conditions before investing. The requirements include entering a participation agreement, not exercising influence over the ETFs, and complying with the investment company’s own restrictions and policies.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.