As part of its broader simplification program, ASIC has published a new regulatory guide, Exchange traded products (RG 282) with consolidated information about the treatment of exchange-traded products (ETPs), including exchange-traded funds (ETFs).
RG 282 incorporates INFO 230 Exchange traded products: Admission guidelines (now withdrawn). It also draws from prior ASIC reports and industry expertise to explain key legislative instruments, regulatory relief, and other relevant information, including:
- The general obligations that apply to ETP issuers, such as responsible entities of registered managed investment schemes (including AFS licensing requirements and modified design and distribution obligations).
- Specific obligations under market operator rules that govern the admission and quotation of ETPs, such as portfolio disclosure requirements, product naming considerations, and liquidity and market-making arrangements.
- The general obligations that apply to market operators that admit ETPs, such as approving ETP issuers, portfolio disclosures, liquidity provisions and market-making matters.
ASIC’s introduction of RG 282 followed a period of targeted consultation with industry stakeholders. Industry expressed support for a consolidated RG on ETPs and provided feedback on various policy issues.
Background
Exchange-traded funds (ETFs) are a subset of exchange-traded products (ETPs). The ETP market has experienced rapid growth in recent years. Investment in Australian ETFs grew in 2024 to reach $200 billion in funds under management, representing a 20-fold increase in market size over the last decade, and expected to continue to rise.
Given the expansion of the ETP market and its complex regulatory environment, it is important that ASIC’s guidance assists regulated entities with meeting their legal obligations and ultimately supports ASIC’s market integrity and consumer protection objectives.
RG 282 consolidates:
- INFO 230 Exchange traded products: Admission guidelines
- Report 583 Review of exchange traded products
- Report 282 Regulation of exchange traded funds, and
- reflects up to date information about ETPs and market practices.
