Coming up with new strategies and unique ways to structure proposed products may improve a fund sponsor’s chances of gaining approval for innovative new products before the Securities and Exchange Commission.
Philadelphia partner Diana McCarthy was quoted in an Ignites article titled “’Aggressive and Respectful’: How Issuers Get the SEC to OK Novel Products.” Diana said research on previous filings and the reasons for rejection is a key first step. Fund sponsors can use this information to outline how their products will avoid the types of risk that regulators flagged with other applicants.
Issuers should also be prepared for a lot of questions from the SEC about the transparency of the fund’s trading mechanisms and other factors.
Read ‘Aggressive and Respectful’: How Issuers Get the SEC to OK Novel Products. (subscription required)