Wed, Jun 19, 2013
A A A
Welcome Guest
Free Trial RSS
New! Family Office and Investor Database with 11,750 contacts
Alternative Market Briefing

Australian regulators examine ETF regulation
Thursday, March 29, 2012

Beverly Chandler, Opalesque London: The Australian Securities and Investments Commission (ASIC) has published a report on exchange traded funds (ETFs) which outlines how this growing industry is regulated in Australia and the impact of proposed international principles to address concerns by overseas regulators. Report 282 Regulation of Exchange Traded Funds, explains ASIC’s current understanding about the operation of ETFs and ongoing work in this area.

The Commission says that ETFs can provide a convenient and low-cost way for investors to diversify and receive returns close to the performance of market indexes or other assets, often with lower fees than traditional managed funds. "But while standard, 'physical’ ETFs generally invest in the underlying investments they are designed to track, 'synthetic’ ETFs also use derivatives, such as swap agreements, to achieve similar outcomes. Benefits to investors of synthetic ETFs may include access to new and varied asset classes and low performance 'tracking error’" the report says. However, it warns that the downsides include increased complexity and counterparty risk.

ASIC Commissioner Greg Tanzer said: "Identifying the regulatory risks arising from potentially complex financial products, such as ETFs, is part of ASIC’s role to promote confident and informed inve......................

To view our full article Click here
Article link
Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Mariner’s incubation platform takes on new volatility arbitrage fund[more]

    Benedicte Gravrand, Opalesque Geneva:- Mariner Investment Group, a $10bn alternative asset manager headquartered in New York which launched an

  2. SWF Institute rankings: total sovereign wealth funds' assets amount to $5,473bn[more]

    Benedicte Gravrand, Opalesque Geneva: - According to the SWF Institute's latest Sovereign Wealth Fund Rankings, the total amount of sovereign wealth funds' asset under management is now $5,473bn, to which oil and gas relate

  3. A bad week for Japan[more]

    Benedicte Gravrand, Opalesque Geneva: - The Japanese stock market got inflated by 80% in six months following Shinzo Abe’s appointment as Prime Minister in December 2012. Indeed, Abe almost immediately launched monetary policy, fiscal policy and economic growth strategies (two points of a three-poin

  4. Are we rotating yet? If we do, will it matter?[more]

    Bailey McCann, Opalesque New York: Market participants have long been looking for the "great rotation," out of fixed income, which has been in the works for several months according to some forecasters. Yet, inflows to both fixed income and equities have largely remained unchanged in any real way.

  5. The fine art market: The Fine Art Group and Fine Art Wealth Management analyze the market and emerging trends in the field of art investments.
Click here for More about Opalesque Tracking
- A new, unique Premium Service -
  1. Peak 6
  2. One William Street
  3. Securis
  4. Haymarket
  5. Cantab
  1. managed account
  2. asia
  3. hedge funds
  4. asian hedge fund
  5. credit