04.26.22

SEC Launches Probe Into ETF Revenue Sharing Deals

by: Greg Saitz

The enforcement division of the U.S. Securities and Exchange Commission (SEC) has launched a sweep of exchange-traded fund (ETF) revenue-sharing practices, probing fund groups about the payments they make to financial intermediaries. Specifically, the SEC wants documents related to what it described as “any compensation paid by an advisor or an ETF to a financial intermediary based on assets held by the financial intermediary," according to details of a letter. Investigators also requested information on any payments based on an intermediary’s activity, whether such payments come from the ETF or advisor and samples of any agreements related to such payments. The regulator wants line-by-line details about revenue-sharing payments for each ETF and each intermediary, sources suggest.

Read the full article on Financial Times ETF Hub