The United States Securitiies and Exchange Commission may implement an earlier proposal to make convenient and cost effective to introduce certain exchange traded funds. This was confirmed through discussions made with SEC staff members.
The fast rate of growth in the industry now worth US$1.5 trillion has made regulators take a second look at easing requirements for the registration of less complex ETFs. An example of this would those that track the S&P 500, which can be registered with fewer regulations from the government agency.
The first proposal for these kinds of funds were made back in March 2008 but was shelved after the global crisis then made matter difficult for the SEC. Back then, staff of the SEC were in the early stages of development of the plan, so it is unclear whether the move needed would be to just revive the old plan or write a completely new one.
Once the rules are adopted, the SEC says that time and money would be saved but would also be used to fund sponsors as well as staff. From there, much more complex ones can then be studied for implementation into the market.
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