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The Mutual Fund Directors Forum has asked the Securities and Exchange Commission to prohibit funds not regulated by the Investment Company Act of 1940 from using the exchange-traded fund title.
The request was filed in response to a public comment period on novel strategies and would impact more than $530 billion in US ETF assets, representing 3.4% of all such funds' net assets.
The SEC initiated the comment process in June to solicit views on emerging investment structures, including products resembling event contracts or gambling.
More than 80 letters have been received from lawyers, industry associations, and individual investors, most seeking greater regulatory clarity.
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