SEC Set to Approve Non-Transparent ETFs

Sullivan & Cromwell LLP - April 29, 2019

On April 8, 2019, the Securities and Exchange Commission issued a notice of its intention to grant Precidian Funds LLC and associated trusts exemptive relief from the provisions of the Investment Company Act of 1940 for the launch of actively managed exchange-traded funds that would not publicly disclose their portfolio holdings on a daily basis as required for traditional exchange-traded funds. Unless the SEC grants a hearing, which must be requested by May 3, 2019, the SEC will grant the requested relief on the basis of the conditions set out in Precidian’s exemptive application and which are summarized in the memorandum.