Active ETF Directors Face Big Task

Directors of actively-managed exchange traded funds will be required to combine the talents of a regular ETF director and mutual fund director. The Securities and Exchange Commission issued orders last month for the funds to launch and it has already approved applications for actively managed ETFs from Bear Stearns Asset Management, PowerShares Capital Management, Barclays Global Investors and WisdomTree Investments.

Active ETF directors will have similar regulatory oversight responsibilities as other directors, such as the 15(c) process and ensuring proper policies and procedures are in place.