The Australian Securities and Investments Commission (ASIC) has released its consultation paper which is seeking feedback on proposals to change the naming conventions for licensed Australian exchanges that admit exchange traded products (ETPs).
The corporate regulator said it sought feedback on updating guidance in Exchange traded products: Admission guidelines (INFO 230) because ETPs had different structures, features, strategies and risks to traditional warrants and listed products.
“Based on feedback over several years from product issuers, financial advisers, industry bodies and licensed exchanges, we have reviewed our guidance on ETP naming conventions in INFO 230 and concluded there is potential for improvement and clarification,” ASIC said.
“We consider they should be labelled in a way that differentiates them from other listed products.”
The consultation paper, titled ETP Naming Conventions: Updates to INFO 230 (CP 356) would include:
- revised naming conventions divided into two levels of labelling – primary labels based on product type, and secondary labels for specific risks or strategies;
- clarification of the role of licensed exchanges authorised to admit ETPs to quotation.
After receiving submissions on the consultation paper, ASIC said it would consider stakeholder feedback and issue a feedback report.
ASIC intended to publish its final update to INFO 230 shortly afterwards.
ASIC welcomed submissions on the consultation paper from all interested parties by 3 March, 2022.