Publications and Presentations

Moriarty Talks ETF Regulatory Changes with Asset TV at the NYSE

March 10, 2016

Corporate partner Kathleen Moriarty recently spoke with ETFGI managing partner Deborah Fuhr on the floor of the New York Stock Exchange (NYSE) about possible regulatory changes in the Exchange Traded Funds (ETFs) space that investors can expect to see in the coming year.

Kathleen Moriarty on ETF Regulatory Changes with ETFGI at the NYSE

In the clip, Fuhr noted Moriarty’s history in the ETF industry, beginning when she served as lead counsel behind the very first ETF, SPDR (pronounced “Spider”), which was listed on AMEX in 1993. March 9, 2016 marked the 26th anniversary of the listing of the first exchange traded funds (ETFs) which happened in Canada.

Speaking to the regulations the SEC is now reviewing, Moriarty said, “I think we will certainly see regulation within the year that has to do with liquidity and derivatives. There has been a lot of concern about how those things occur in mutual funds as well as ETFs and there have been rule proposals and comments going back and forth for each. I think that by the end of the year we may see something, or if not by the end of the year, early next year.”

Moriarty continued, “Non-transparent ETFs continue to be a puzzle, the commission is concerned about certain aspects of them, so my own personal guess is that we won’t see anything this year but you never know. I think you will also see a couple of new ETFs that are different in ways that have never been done before. So it may not happen by the end of this year, it may take a little while longer, but I think there are some innovative products coming down the road as well, so I think we can expect to see some of those."

Fuhr noted that the Department of Labor is examining how to regulate advisors and their advice, to which Moriarty replied, “There is a lot of concern about suitability, and everybody is trying to figure out whom to place suitability on. Consumers need somebody to look out for them, so the question is, who will be the one to look out for them?“   

»Watch the full "Regulatory Changes in the ETF Space" video clip on AssetTV (registration required).

Email Disclaimer