By John D'Antona

Trump Signs ETF Research Provision Bill

Broker-dealers will soon be able to offer investors research on exchange-traded funds, just like for plain equities or fixed-income securities.

President Trump last Friday signed S. 327, the Fair Access to Investment Research Act of 2017, into law, allowing broker-dealers to provide research reports to clients on exchanged-traded funds.

The Senate passed the measure in early September. In introducing the legislation, Sen. Dean Heller, R-Nev., explained that “securities laws provide legal protections for broker-dealers to provide research reports for several asset classes such as listed stocks and corporate debt — but not for ETFs.”

The Fair Access to Investment Research Act creates “parity in the law by allowing broker-dealers to publish public research reports on ETFs, which millions of households invest in,” Heller added.

Ben Johnson, Morningstar’s director of global ETF research, told ThinkAdvisor in a Monday phone interview that the law “puts ETFs on equal footing with other securities,” with broker-dealers “allowed to publish research now” on ETFs.

“The more intelligent people you have looking at these securities, the better it is for investors,” Johnson added.

(Visited 107 times, 1 visits today)

Related articles

  1. Euronext Aims for ETF Growth

    Back in 2002, ETF trading was simple and at Arca. But is that still true today?

  2. Tradeweb Launches U.S.-Listed ETF Platform

    The initial Xtrackers line-up will cover Japan, Germany and the Eurozone.

  3. Comings and goings at brokerage firms highlight this week's roundup.

  4. The union enables ETF trading cheaply and efficiently.

  5. Euronext Aims for ETF Growth

    How are institutions trading ETFs and who are they trading with?