2

Does the SEC have any guidelines regarding companies promoting the purchase of their shares to hedge funds, pension funds or ETF issuers?

Is it legal for companies to compensate ETF issuers or mutual funds for adding their shares to the fund?

Can companies compensate Index providers such as MSCI or S&P for adding their shares to an Index?

I would appreciate any links or references to SEC materials/regulations (and/or European regulators)

  • 4
    I'm voting to close this question as off-topic because this appears to be a legal question. – ChrisInEdmonton Sep 9 at 13:43
  • 2
    Yes, there is a legal/regulatory aspect to this question but it primarily pertains to finance. Since there is no SE page that is specifically focused on securities laws, I believe this is the most relevant page to post this. – Mustard Tiger Sep 9 at 13:56
  • @MustardTiger it may be about finance, but it's not about personal finance. Please see money.stackexchange.com/help/on-topic. – yoozer8 Sep 9 at 14:47
  • 2
    Would this information not be relevant to any personal investor who owns ETFs or mutual funds? – Mustard Tiger Sep 9 at 15:13
  • 2
    @ChrisInEdmonton I will vote to reopen this as it is the precursor to personal finance questions of how to evaluate disclosures written in financial products, and easily wordable as a personal finance question of basic investing portfolio suitability. The person simply isn't aware of the role of disclosures in SEC regulated financial products – CQM Sep 9 at 17:48
2

Is it legal for companies to compensate ETF issuers or mutual funds for adding their shares to the fund?

Where the SEC regulates a potential conflict of interest it is just regarding disclosure. So in the fine print disclaimer, it might mention if a payment occurred for inclusion, and thats it.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.