Australian ETF market stands up to proposed international standards - ASIC
Australia's exchange-traded fund (ETF) market is up to proposed international standards, according to an Australian Securities and Investments Commission (ASIC) report.
According to Report 282 'Regulation of Exchange Traded Funds', the regulator has been monitoring international law and discussions on the ETFs - a market which has grown to significant scale in major international jurisdictions compared to the relatively small Australian sector.
ASIC has been in contact with the United States, Hong Kong and the United Kingdom, and the report stated that ETFs are a key priority for the International Organisation of Securities Commissions (IOSCO).
In its standing committee on investment management, IOSCO outlined 15 principles in relation to the regulation of the ETFs, including the need to clearly differentiate such products from other exchange-traded products, increasing disclosure, and the consideration to put in place requirements regarding the transparency of an ETF's portfolio.
"Identifying the regulatory risks arising from potentially complex financial products such as ETFs is part of ASIC's role to promote confident and informed investors and fair and efficient financial markets," said ASIC commissioner Greg Tanzer.
"The regulation of ETFs in Australia is in line with proposed international standards and reflects consideration of the issues identified in IOSCO's consultation," he said.
Tanzer said ASIC will continue to conduct surveillance on current ETF issuers to help reduce some of the complex regulatory risks that continue to emerge.
Recommended for you
Several wealth management companies have been shortlisted in the second annual Australian AI Awards program, which champions individuals and organisations pioneering Australian AI innovation.
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
