Exchange-traded fund (ETF) providers have tried to dispel fears that their products are non-transparent and need no independent supervision, Investor Daily reports. ETFs have the same custodial agreements and reporting requirements as any managed fund, said Drew Corbett, BetaShares head of investment strategy and distribution.
Mark Oliver, IShares Australia head, said all its ETFs follow strict standards of disclosure and audit under the Corporations Act, recognized international regulatory frameworks and Australian Securities Exchange listing rules. The statements came after the principal at a Melbourne-based financial planning firm raised concerns about ETFs. The principal said the local industry could be skeptical about any products rising in popularity, owing to fund failures since the global financial crisis and increased regulation and compliance requirements on advisers.
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