ASIC warns of securities lending disclosure for ETFs
16 August 2011 Melbourne
Image: Shutterstock
The Australian Securities and Investments Commission (ASIC) has issued guidance to investors on risks associated with exchange-traded fund (ETF) products.
“ETFs are growing in popularity and people should understand the different features and risks of ETFs before investing,” said ASIC Chairman Greg Medcraft.
ETFs are a type of managed investment that can be bought and sold like shares. They usually aim to replicate changes in the value of a share index, but are now also available for a wide range of assets including natural resources and foreign currencies.
The Australian regulator warns that securities lending practices should be outlined in the product disclosure statement for both physical and synthetic ETFs, on its MoneySmart website.
“ETFs are growing in popularity and people should understand the different features and risks of ETFs before investing,” said ASIC Chairman Greg Medcraft.
ETFs are a type of managed investment that can be bought and sold like shares. They usually aim to replicate changes in the value of a share index, but are now also available for a wide range of assets including natural resources and foreign currencies.
The Australian regulator warns that securities lending practices should be outlined in the product disclosure statement for both physical and synthetic ETFs, on its MoneySmart website.
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