In another step toward loosening the regulatory reins on Exchange Traded Funds, the SEC granted PowerShares Capital Management an exemption that will allow a wider range of firms to invest in its ETFs, Walters Kluwer reports.
The change comes a year after PowerShares finalised its merger with AMVESCAP, which owns mutual fund groups AIM and INVESCO. The acquirer wants its mutual fund firms to have the ability to invest in its PowerShares ETFs.
The SEC’s approval will make it easier for mutual funds to invest in ETFs and makes these offerings more attractive for firms looking to break into the market, analysts said.
Bruce Bond, president of PowerShares adds:”We are very pleased with the increased flexibility and investment opportunities that this order creates for the PowerShares family of ETFs.”