Our lawyers have extensive experience advising clients on exchange-traded fund (ETF) formation and the development of new products. We counsel a variety of financial firms on entering the ETF business, including those creating their own ETF trusts, those launching ETFs using third-party platforms and those becoming sub-advisers to ETFs offered by existing fund complexes. We guide ETF sponsors through complex and evolving legal issues and help facilitate the efficient and timely launch of their ETFs. Once a new fund is launched, we advise on a broad range of issues including regulatory filings and compliance and board matters. We have developed close relationships with leading ETF service providers necessary to operate an ETF, including administrators, Authorized Participants (APs), custodian banks, exchanges, index providers and market makers. Our experience with these service providers helps ensure a coordinated and effective approach to the legal and other services necessary to offer ETFs. We also work with boards of directors on all aspects of establishing and overseeing ETFs.
ETF Reg Insights
Proposed ETF Rule Comes with Widely Expected Conditions and Some Notable Twists
July 09, 2018
SEC to Consider ETF Rule Proposal at June 28, 2018 Open Meeting
June 22, 2018
SEC Proposals Promote Distribution of Research on Investment Funds
Investment Management Update
June 11, 2018
In addition to providing the legal counsel necessary to organize an ETF, we assist clients with planning and structuring their businesses. We help them evaluate their options and provide guidance on the business decision to create a stand-alone ETF trust or offer an ETF on a third-party platform. We have extensive experience drafting and negotiating the full range of documents for new ETFs including prospectuses, exemptive and 19b-4 applications, initial board materials and vendor agreements. We advise financial firms on navigating “first-of-its-kind” ETFs through the approval process at the SEC, other regulatory agencies and the exchanges. In counseling our ETF clients on new products, we collaborate with other Thompson Hine attorneys who focus on securities market, taxation, intellectual property and licensing issues. We also reach out to key industry participants, including market makers and authorized participants, who help vet the product and trading issues relating to the purchase and sale of ETF shares.
After the launch of an ETF, we provide an array of compliance and regulatory support services to our investment management clients. We advise on reporting, disclosure obligations, trading and brokerage practices, valuation matters, anti-money-laundering rules, Regulation S-P (privacy policies), proxy voting, distribution practices, advertising limitations, website compliance, and relevant tax and ERISA matters.
Investment Management Group
Our ETF practice is part of the firm’s Investment Management group, which services all types of investment funds (both registered and unregistered) and the investment advisers, banks, brokerage firms and other financial institutions that offer these funds and other products. Our deep understanding of the investment strategies related to different types of investment vehicles enables us to provide clients with comprehensive guidance on how to adapt strategies to an ETF and the product’s numerous regulatory restrictions and limits.
July 09, 2018
June 22, 2018
SEC Proposals Promote Distribution of Research on Investment Funds - Investment Management Update
June 11, 2018
SEC Proposes Changes to Auditor Independence - Investment Management Update
June 05, 2018
SEC’s NMS Pilot Program of Vital Interest to ETFs - ETF Update
May 10, 2018
SEC Proposes Changes to Liquidity Risk Disclosures - Investment Management Update
March 26, 2018
Fifth Circuit Vacates DOL Fiduciary Rule - Employee Benefits & Investment Management Update
March 20, 2018
OCIE Announces 2018 Examination Priorities - Investment Management Update
March 02, 2018
Most Common Advertising Rule Compliance Issues Raised in OCIE Deficiency Letters - Investment Management Update
October 26, 2017
Advisers Must Offer Investors the Lowest-Fee Share Class Available - Investment Management Update
September 25, 2017
SEC Risk Alert Highlights Cybersecurity Compliance Risks of Broker-Dealers, Investment Advisers and Fund Companies - Investment Management Update
August 17, 2017
SEC Eases Form ADV Compliance Deadline for Interim Updates - Investment Management Update
August 16, 2017
This episode features Bibb Strench, a partner in Thompson Hine’s Investment Management practice group, discussing the SEC’s regulation of ETFs.