ASIC RG 282 — ASIC Regulatory Guide – RG 282 Exchange traded products

Page 1 REGULATORY GUIDE 282 Exchange traded products November 2025 About this guide This guide relates to exchange traded products (ETPs), including exchange traded funds (ETFs) and structured products. The first part of the guide is for issuers of interests or shares in ETFs that are responsible entities. It gives guidance on how these ETF issuers can comply with their obligations under the Corporations Act 2001, relevant legislative instruments, and market operating rules. The second part of the guide is for Australian market operators that admit ETPs. The guide sets out good practices in relation to admission and monitoring standards for ETPs, which largely reflect current market practice. Page 2 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 2 About ASIC regulatory documents In administering legislation ASIC issues the following types of regulatory documents. Consultation papers: seek feedback from stakeholders on matters ASIC is considering, such as proposed relief or proposed regulatory guidance. Regulatory guides: give guidance to regulated entities by:  explaining when and how ASIC will exercise specific powers under legislation (primarily the Corporations Act)  explaining how ASIC interprets the law  describing the principles underlying ASIC’s approach  giving practical guidance (e.g. describing the steps of a process such as applying for a licence or giving practical examples of how regulated entities may decide to meet their obligations). Information sheets: provide concise guidance on a specific process or compliance issue or an overview of detailed guidance. Reports: describe ASIC compliance or relief activity or the results of a research project. Document history This guide was issued in November 2025 and is based on legislation and regulations as at the date of issue. This guide replaces:  Superseded INFO 230 Exchange traded products: Admission guidance (INFO 230). Disclaimer This guide does not constitute legal advice. We encourage you to seek your own professional advice to find out how the Corporations Act and other applicable laws apply to you, as it is your responsibility to determine your obligations. Examples in this guide are purely for illustration; they are not exhaustive and are not intended to impose or imply particular rules or requirements. Page 3 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 3 Contents A Overview ........................................................................................... 4 What this guide covers ...................................................................... 4 How ETFs are regulated .................................................................... 6 Specific relief available for ETF issuers ............................................. 7 B What is an exchange traded fund? ................................................ 9 Key features of ETFs ......................................................................... 9 Investment strategies and types of ETFs ........................................ 14 C What obligations apply to ETF issuers? ..................................... 16 AFS licensing requirements ............................................................. 16 Responsible entity obligations ......................................................... 17 Dual access funds ........................................................................... 17 Disclosure of portfolio information ................................................... 19 Underlying assets ............................................................................ 26 Securities lending ............................................................................ 27 Other issuer obligations relevant to retail investors ......................... 27 D What relief is available? ................................................................ 30 Relief to facilitate the operation of ETFs .......................................... 30 Relief for periodic statements .......................................................... 35 Relief for digital disclosure ............................................................... 35 Other types of relief ......................................................................... 36 E Guidance for market operators that admit ETPs (including ETFs) ............................................................................................... 38 Approving ETP issuers .................................................................... 38 Ongoing supervision of ETPs and issuers ....................................... 40 Underlying assets ............................................................................ 41 Disclosure of portfolio holdings ........................................................ 45 Liquidity provision and market making ............................................ 46 Securities lending ............................................................................ 50 Development of market rule frameworks and innovation ................ 50 Product labels and naming considerations ...................................... 50 Other types of ETPs ........................................................................ 53 Key terms ............................................................................................... 54 Related information ............................................................................... 58 Page 4 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 4 A Overview Key points An exchange traded fund (ETF) is a type of open-ended managed fund where the interests (units) in the fund are in a class that can be traded on a licensed market. ETFs are a subset of exchange traded products (ETPs). Both ASIC and market operators play an important role in regulating ETFs. Identifying and addressing the regulatory risks arising from ETFs is part of ASIC’s role in promoting confident and informed investors, and fair and efficient financial markets. ETFs have unique features and concepts and are subject to specific obligations, including licensing and disclosure obligations. ASIC has provided various relief to ETF issuers to facilitate the operation of ETFs. ASIC has also provided guidance to market operators in relation to the admission and monitoring of ETPs generally. What this guide covers RG 282.1 Section A to Section D of this guide are for Australian financial services (AFS) licensees that are responsible entities of managed investment schemes where the interests in the schemes are quoted and can be traded on a licensed market. It covers some of the obligations that apply to ETF issuers under the Corporations Act 2001 (Corporations Act), relevant legislative instruments and market operating rules. This guide does not cover the cross-listing of ETFs across multiple licensed markets. Note: This guide also applies to corporate directors of corporate collective investment vehicles (CCIVs) where shares in a sub-fund of the CCIV are quoted on a licensed market. Corporate directors of such CCIVs are also ETF issuers. However, when this guide was issued, no CCIV sub-fund had been admitted to quotation as an ETF. Therefore, this guide does not refer to CCIVs in all places where guidance could apply. Despite the differences in legal structure, readers should regard references to a ‘fund’ or ‘scheme’ as including a reference to a CCIV sub-fund, and references to ‘interests’ or ‘units’ as including a reference to shares in a CCIV sub-fund. Corporate directors of CCIVs owe certain duties to members of the CCIVs under Ch 8B of the Corporations Act and general law. RG 282.2 Section E of this guide is for holders of Australian market licences that admit ETPs. It sets out ASIC’s existing expectations and current exchange market practice relating to: (a) approving ETP issuers; (b) ongoing supervision of ETPs and issuers; Page 5 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 5 (c) pricing of underlying assets of ETPs and other conditions for underlying assets (including where derivatives are involved); (d) disclosure of portfolio holdings; (e) liquidity provision and market making; (f) securities lending; (g) waivers; (h) product labels and naming considerations; and (i) other types of ETPs. It also outlines ASIC’s expectations for licensed Australian exchanges’ ongoing supervision of ETPs and issuers, to ensure a fair, orderly and transparent market and compliance with the exchanges’ operating rules. Note 1: This guide incorporates market operator guidance that was previously contained in INFO 230 Exchange traded products: Admission guidance (INFO 230). INFO 230 was specifically aimed at market operators of ETPs (beyond just ETFs, which are the focus of Section A to Section D of this guide). We consider that guidance to both ETF issuers and market operators of ETPs is better combined in a single, consolidated document. Note 2: When this guide was issued, the only licensed markets offering quotation of ETPs are ASX (which facilitates the quotation and trading of ETPs on the AQUA market) and Cboe. Note 3: While this guide covers some of the obligations that apply to issuers of exchange traded funds and market operators that admit exchange traded products under applicable law and market operating rules, it does not cover all requirements or circumstances. You should refer to the specific rules, procedures, and related documentation issued by market operators for comprehensive and up-to-date information. RG 282.3 An ETF is a type of open-ended managed fund (usually a unit trust that is a registered scheme or a class of interests in a registered scheme) where the relevant interests are in a class that can be traded on a licensed market. ETFs trade and settle like listed securities. However, unlike a fund where the interests are not quoted for trading, interests in an ETF are continuously traded on a licensed market, and are generally cleared and settled on a licensed clearing and settlement (CS) facility. Note 1: Some ETFs (commonly referred to as ‘dual access ETFs’) allow investors to purchase and sell units in an ETF either on-market or off-market (by lodging relevant documentation directly with the responsible entity for the fund), providing choice to investors and their advisers, and enables greater cost efficiency for issuers. Where an investor applies or redeems directly with the ETF issuer, these transactions are not centrally cleared. ETF issuers may offer dual access ETFs to provide investors flexibility around applications and redemptions, and for issuers to increase efficiency and reduce costs. Note 2: Most ETFs typically have their units quoted for trading on ASX’s AQUA market or the operating rules of the Cboe market as opposed to the ETF being admitted under the listing rules of the relevant market. ETFs are a type of ETP. ETPs are Page 6 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 6 financial products that are quoted and can be traded on a licensed market, and are generally categorised as ‘open-ended’ products, where interests can be created or redeemed continuously based on investor demand—such as ETFs and structured products. Note 3: A structured product is a security or derivative that gives financial exposure to the performance of underlying instruments. Most structured products are open ended. Note 4: In contrast, ‘listed closed-ended’ products are listed products where the number of interests is fixed at launch and cannot be created or redeemed continuously—such as listed investment companies (LICs), listed investment trusts (LITs) and real estate investment trusts (REITs). RG 282.4 This guide is intended for: (a) ETF issuers (see Section A to Section D). While it does not expressly apply to issuers of other traded investment products such as structured products and ‘closed-ended’ products, some information in this guide may be useful for these types of issuers; and (b) market operators (see Section E), with respect to the admission of ETPs, including ETFs. How ETFs are regulated ASIC’s role RG 282.5 ASIC is responsible for administering the Corporations Act and the Australian Securities and Investments Commission Act 2001 (ASIC Act), which both set out the conduct and disclosure obligations of financial service providers, including responsible entities that operate registered managed investment schemes. RG 282.6 ASIC’s role in relation to ETF issuers includes: (a) licensing the responsible entity; (b) assessing applications for registration of schemes; (c) providing class relief or individual relief, as appropriate, and monitoring compliance with the relief; (d) undertaking proactive and reactive supervision and surveillance activities in relation to conduct and disclosure obligations; and (e) taking enforcement action for non-compliance with the law. RG 282.7 ASIC is also responsible for the supervision of operators of financial markets and market participants. Our main functions are to: (a) make decisions about domestic or overseas market licence applications, changes to operating rules and other matters relating to financial markets; Page 7 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 7 (b) assess, report on and enforce compliance of market participants and market operators (and other prescribed entities) for compliance with the market integrity rules and the Corporations Act, including risk assessments of participants and, where necessary, conduct targeted surveillance of suspected misconduct; and (c) enforce the prohibition on a person operating, or holding out that they operate, a financial market in Australia, if they are not licensed or exempt. RG 282.8 We directly supervise trading on Australia’s domestic licensed markets, including activity in relation to ETFs, as well as other cash market products, options market contracts and derivatives market contracts. RG 282.9 In addition to administering the relevant laws, ASIC maintains close dialogue with the market operators in relation to ETFs. This includes, among other things, considering novel product referrals from market operators and engaging on proposed amendments to the market operating rules. Note: The term ‘novel product referral’ refers to the process for facilitating admission of novel products. ASIC and the relevant market operator(s) will generally discuss the novel aspects of the product (including informal feedback on the disclosures and representations inside the draft Product Disclosure Statements (PDS) and target market determinations (TMDs)) before the market operator determines whether to admit the product for quotation. This may add additional time to the admission process: see the note at RG 282.117. Market operators RG 282.10 Market operators play a gatekeeper role in deciding which products may be traded on a public market that is accessible to retail investors. They set the admission requirements for ETFs, approval requirements for ETF issuers, and assess the compliance of products proposed for quotation with their operating rules: see RG 282.18–RG 282.19. RG 282.11 Market operators are also responsible for monitoring the compliance of entities they admit to quotation with obligations under their respective operating rules, such as liquidity commitments and certain disclosure requirements, and for the monitoring of the market more broadly—to ensure its fair, orderly and transparent operation: see RG 282.118–RG 282.120. RG 282.12 Expectations for market operators, including good practices for admission of ETPs (including ETFs), are outlined in Section E. Specific relief available for ETF issuers RG 282.13 ETF issuers are subject to various obligations including obligations under the Corporations Act, the ETF’s constitution, and relevant rules of the Page 8 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 8 market operators. Section C sets out the AFS licensing and responsible entity obligations imposed on ETF issuers under the Corporations Act. ASIC has provided class relief to ETF issuers from some of these obligations under: (a) ASIC Corporations (Relief to Facilitate Admission of Exchange Traded Funds) Instrument 2024/147; (b) ASIC Corporations (Periodic Statement Relief for Quoted Securities) Instrument 2024/14; and (c) ASIC Corporations (Electronic Disclosure) Instrument 2025/447 See Section D. RG 282.14 Table 1 summarises the key class relief available to ETF issuers. ETF issuers can also apply to ASIC for relief on an individual basis: see RG 282.112– RG 282.115. Table 1: Key relief available for ETF issuers Relief instrument Relevant provision of the Corporations Act Guidance ASIC Instrument 2024/147 Relief to facilitate the operation of ETFs, including:  equal treatment relief (s601FC(1)(d) and s1224D(2)(b));  material change and significant event disclosure relief (s1017B); and  relevant interest, substantial holding and beneficial ownership tracing relief (s606) RG 282.81– RG 282.104 ASIC Instrument 2024/14 Relief from certain content requirements for periodic statements: s1017D RG 282.105– RG 282.107 ASIC Instrument 2025/447 Digital disclosure relief for certain communications Note: This instrument modifies various disclosure obligations relating to Pt 7.7 and 7.9 of the Corporations Act, including reg 7.9.75A of the Corporations Regulations 2001 (Corporations Regulations) which relates to periodic statements. RG 282.108– RG 282.111 Page 9 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 9 B What is an exchange traded fund? Key points An ETF is different from an unquoted fund because the units in an ETF are continuously traded on a licensed market, and generally cleared and settled on a licensed CS facility. A key aspect of ETFs is that they combine the features of a listed entity (to have its securities traded on a financial market) with the open-ended nature of unquoted funds (to allow issue and redemption of units). The primary issue and redemption of interests in an ETF can involve authorised participants transacting with the issuer. Generally, an ETF issuer is required to provide for market making in the ETF’s interests, either through an external market maker it appoints or by market making itself. Through the continuous quotation of buy and sell orders in the ETF by the market maker on the market, the market price of units in the ETF will generally be at, or closely resemble, the current net asset value (NAV) of the ETF throughout the trading day. At the date of publication, retail investors can trade in ETF units through a market participant (or via investor-directed investment platforms) on the ASX and/or Cboe secondary markets. Key features of ETFs Open-ended RG 282.15 An ETF is an open-ended registered scheme, or class of units within such a scheme, where the units are traded on a licensed market and settle like listed securities. RG 282.16 ETFs are an ‘open-ended’ product. The number of units on issue in an ETF are not fixed and may increase (through applications) or decrease (through redemptions) daily, depending on investor demand—this is known as a ‘primary market transaction’. RG 282.17 ‘Open-ended’ products, like ETFs, differ from ‘closed-ended’ products, which generally offer a fixed number of securities or interests of investors in an initial public offering. Note: Unlike open-ended products, ‘closed-ended’ product issuers are precluded from offering withdrawal or redemption facilities by the listing rules of the relevant market— so, the number of securities or interests on issue does not vary, except after certain specified corporate events such as capital raisings, buy-backs or dividend reinvestment. The traded prices for listed investment companies and listed investment trusts can differ significantly from the NAV. Page 10 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 10 Quotation RG 282.18 To facilitate the secondary trading of ETF units, some market operators must enable the admission or quotation of ETFs for trading on their licensed market. Note: In Australia, when this regulatory guide was published, the only licensed markets offering quotation of ETFs were ASX (which facilitates the quotation and trading of ETF units on the AQUA market) and Cboe. RG 282.19 To be, and to remain, quoted on a licensed market, ETF issuers and ETFs must demonstrate that they comply, and can continue to comply, with the operating rules of the relevant market operator (market operating rules) as follows: (a) For ASX, ETFs are primarily admitted under Schedule 10A of the ASX Operating Rules (known as the ‘AQUA rules’). (b) For Cboe, the Cboe Operating Rules apply to the admission of various types of investment products, including ETFs: see Section 1 and Section 14 of the Cboe Operating Rules. Note 1: Some early ETFs were originally admitted on the ASX market under the ASX Listing Rules, but most of these funds have been migrated to the AQUA market, so that the AQUA rules (as opposed to the ASX Listing Rules) apply to them. Note 2: In this guide, the term ‘relevant rules and procedures’ refers to the operating rules, procedures and any applicable guidance notes that govern the admission and ongoing quotation of ETFs for these market operators. Arbitrage and authorised participants RG 282.20 ETFs have a unique creation/redemption process which assists secondary market prices to maintain a close correlation to the value of the underlying assets they track. The creation and redemption process takes place off market, generally between the ETF issuer and certain market participants (known as ‘authorised participants’). As noted in RG 282.16, this process is known as the ‘primary market’ of an ETF. ETF issuers allow ongoing application for and redemption of ETF units at a price based on the NAV of the ETF by authorised participants: see Figure 1. The market price of an ETF will generally be at, or closely resemble, the current NAV of the fund because of the arbitrage activities of authorised participants and market makers. Note 1: In the case of dual access ETFs, investors other than authorised participants (including retail clients) can apply for and redeem units directly with the ETF issuer in the primary market: see RG 282.40−RG 282.45 for more information. Note 2: Authorised participants and market makers engaging in arbitrage activities must comply with any relevant rules and procedures of the market operator. Note 3: Participants engaging in arbitrage should also ensure they comply with obligations under the Corporations Act and the market integrity rules (see RG 282.59) Page 11 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 11 in avoiding behaviour that compromises market integrity, such as front-running ETF flows (e.g. use of non-public information to trade ahead of significant ETF transactions), manipulative trading (e.g. artificially inflating or deflating ETF market prices to enhance profit from arbitrage), trading on non-public information (see RG 282.62(d)), and failing to adhere to short selling restrictions (e.g. naked short selling without relevant relief). Note 4: The primary market described in this paragraph relates only to ETFs with external market making arrangements and not internal market makers. For further information on internal market making arrangements, see RG 282.56−RG 282.63. Figure 1: Creation/redemption process for physically-replicating equities-based ETF with external market makers Note: For a description of this figure, see RG 282.20 (accessible version). RG 282.21 ETF units are generally redeemable either ‘in-cash’ or ‘in-kind’. Under an in-cash redemption model, an authorised participant (or market maker that is an authorised participant—see RG 282.28 for more information on market makers) that redeems ETF units receives cash equivalent to the NAV of those units. By contrast, under an in-kind redemption model, the authorised participant or market maker receives a basket of the ETF’s underlying securities (or a representative sample) instead of cash at redemption. The choice of redemption mechanism has implications for liquidity management, tax efficiency, transaction costs and portfolio transparency. RG 282.22 If the market price of the ETF diverges from the value that authorised participants and market makers believe to be NAV per ETF unit (expected NAV) at a particular time, an authorised participant or market maker may Page 12 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 12 generally be expected to take advantage of the arbitrage opportunity. For example, if an ETF market price is higher than the expected NAV per unit, an authorised participant or market maker will sell ETF units on-market at the higher price and apply for creation of ETF units at the lower price, to realise gains from this arbitrage opportunity. RG 282.23 This selling will tend to drive the ETF market price lower back towards NAV. Conversely, if an ETF market price is less than the expected NAV per unit, the authorised participant or market maker will buy ETF units, driving the ETF market price back towards expected NAV, and then profit by redeeming those interests at NAV at the end of the day. RG 282.24 The availability of hedging instruments means that until the ETF market price adjusts, there is an arbitrage opportunity. On entering a transaction in ETF units, to protect against any change in NAV until the end of the trading day, the authorised participant or market maker may use hedging instruments to vary its net position in the assets that underlie the ETF, relative to what they would have been if the transaction in ETF units had not taken place, often by using proxies such as index futures where appropriate. For example, the authorised participant or market maker may buy the underlying assets to hedge against any increase in the NAV until the end of the day if it has already sold ETF units on-market. RG 282.25 Where securities in a particular basket (see RG 282.64 for more information on creation/redemption baskets) must be provided for the issue of an ETF unit, the authorised participant or market maker can buy the basket of securities required, at the time it sells the ETF unit on-market. The authorised participant or market maker will apply for an ETF unit at the end of the day if needed to meet its settlement obligations or redeem units if it holds more than needed. Market making and providing liquidity in the ETF RG 282.26 Secondary market liquidity in ETPs can be influenced by a range of factors including investor demand for the product, sales and distribution efforts, prevailing market conditions and investor education. However, to ensure regular two-way pricing (i.e. bids and offers) is maintained in each product to help balance supply and demand. ETP issuers, including ETF issuers, are generally subject to liquidity support obligations under the operating rules of the relevant market operator. Note: Under the relevant rules and procedures, an issuer seeking to have a new ETF admitted to quotation must have certain liquidity or market making arrangements in place that are appropriate to the market operator. Market operators may review whether a liquidity arrangement is consistent with other ETFs of similar investment mandate, asset class and/or strategy. The relevant rules and procedures may require the ETF issuer to reach an agreement with the market operator on the maximum spread (in basis points or cents) and minimum order quantity (dollar value) at which quotes will be provided in the ETF for the required proportion of the trading day. Page 13 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 13 RG 282.27 To comply with those liquidity support obligations, certain processes are followed: (a) ETP issuers may appoint an independent third party that is, or has an arrangement with, a market participant (external market maker) to act as lead market maker. A lead market maker’s role is to provide liquidity in secondary trading volumes and to quote within agreed spreads. Market makers earn their revenue from trading, and competition is a strong motivation to maintain tight bid–offer spreads that should then produce close alignment to the expected NAV. Note: Market making agreements with issuers are negotiated between the market maker and the relevant ETF issuer on a case-by-case basis for each specific ETF. Issuers should check the relevant policies and rules for the requirements in relation to market making and liquidity. (b) In other cases, the ETP issuer performs the market making function itself through an execution agent. This is known as internal market making: see RG 282.56–RG 282.63. RG 282.28 While both market makers and authorised participants support liquidity in an ETF, their roles are not the same (although some market makers may also be authorised participants). Authorised participants are permitted to create and redeem units with the ETF issuer in the primary market. Authorised participants help support ETF liquidity when they introduce newly created ETF units or withdraw units from the secondary market. Market makers are entities that provide two-way bid/offer quotes for the ETF during the trading day to support ETF liquidity—this occurs within the secondary market. Note 1: Market makers and authorised participants will generally require an AFS licence with the relevant authorisations for the activities they conduct (e.g. dealing and/or making a market), unless they are exempt. See Regulatory Guide 1 Applying for and varying an AFS licence (RG 1) for further information on AFS licensing requirements. Note 2: The ASIC Corporations (Short Selling) Instrument 2018/745 provides a conditional short selling exemption to certain ETF market makers during the course of market making in the ETF in specified circumstances: see section 5 of ASIC Instrument 2018/745. ETF market makers who meet the requirements to rely on ASIC Instrument 2018/745 must ensure that the sale occurs on a day when applications for and redemptions in the ETF are allowable. As part of their process of avoiding settlement failure, ETF market makers should factor in any risks to meeting settlement, such as any creation blackout dates or cut-off times of the ETF. ASIC Instrument 2018/745 requires ETF market makers who exceed 1% of volume or value of sales during a 12-month period of the short sales in the ETF, to report this to ASIC within 28 days after 31 March (the end of the 12-month reporting period). RG 282.29 For further information on liquidity provision and market making for ETPs (including ETFs), see RG 282.56–RG 282.63 and also RG 282.144– RG 282.159. Page 14 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 14 Investment strategies and types of ETFs RG 282.30 There are different types of ETFs and investment strategies. They include, at a high level: (a) Passive ETFs: These ETFs are generally structured to replicate the performance of an external benchmark (e.g. an equity index, interest rate benchmark or commodity price). The most common type of passive ETF is an index-tracking ETF. The investment strategy of an index- tracking ETF is to acquire an exposure to securities that matches a robust and transparent benchmark as closely as possible. Sometimes derivatives or other products are used to achieve benchmark matching, such as when it is impractical or inefficient to physically acquire certain securities in the benchmark. The use of derivatives (or other complex investment strategies) may cause an ETF with an ‘index-tracking’ investment mandate to be labelled ‘Complex’. (b) Active ETFs: These ETFs do not seek to track the performance of an index, benchmark or specific security. Instead, for example, they may aim to outperform a stated benchmark. In order to achieve this objective, these ETFs may employ an investment strategy that involves specified rules or discretionary decisions. Note: For more information about the application of primary and secondary labels (including the application of the ‘Active’ label to ETFs), see RG 282.163 to RG 282.168. RG 282.31 Complex ETFs: These ETFs may use more complex investment strategies than simple ‘long-only’ holdings of securities, bonds or other financial assets. The complex investment strategies used include the use of debt or leverage, short selling, or certain uses of derivatives (other than for disclosed hedging of exchange rate or interest rate risks) (see RG 282.126– RG 282.130), or they may also fall under ASIC’s definition of a hedge fund: see Regulatory Guide 240 Hedge funds: Improving disclosure (RG 240). Note 1: For more information about the application of primary and secondary labels (including the application of the ‘Complex’ label to ETFs), see RG 282.163– RG 282.168. Note 2: For information about smart beta or rules-based ETPs (including ETFs), see RG 282.169–RG 282.170. For information about leveraged or inverse ETPs, see RG 282.171–RG 282.172. RG 282.32 ETFs can invest in different underlying assets including equities, property securities, commodities, fixed interest instruments, crypto-assets, among others. There are also multi-asset ETFs that invest across a range of asset classes. RG 282.33 ETFs can either be physically backed or synthetic. Physically backed ETFs hold the underlying assets directly. Synthetic ETFs use derivatives to copy Page 15 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 15 the movements of an index or underlying assets, although they may hold some of the underlying assets. Note: Synthetic ETFs have an additional risk that the counterparty to the derivative could fail to meet their obligations. RG 282.34 The naming conventions for various ETPs, including ETFs, are set out in RG 282.163–RG 282.172. ETF issuers should adopt appropriate and generally true-to-label product trading names and descriptions that comply with these naming conventions, to the satisfaction of the market operator. The purpose of the naming conventions is to help retail investors clearly differentiate between different types of ETFs with different characteristics, risks and strategies, where investors may not always access and read the PDS. All ‘open-ended’ exchange traded products must use a primary label to indicate the relevant product’s structure (i.e. ‘Exchange Traded Fund’, ‘ETF’, ‘Structured Product’ or ‘Structured’, as applicable). Depending on the investment strategy used, the ETF may need to use the secondary label ‘Active’ or ‘Complex’ in its name. An ‘Active ETF’ must use those words in its name unless it is a Complex ETF, in which case it must use that term. Note: While it is expected that the ETF issuer adopt relevant labels in its trading name in accordance with the naming conventions, the name of the fund in the constitution and in ASIC public records can remain as is and does not have to be changed. Page 16 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 16 C What obligations apply to ETF issuers? Key points ETF issuers must comply with the legal and regulatory requirements that ordinarily apply to units in unlisted registered managed investment schemes. These include: • AFS licensing requirements and responsible entity obligations; and • other issuer obligations relevant to retail investors. ETF issuers must also comply with rules imposed by the relevant market operator. As issuers of units in quoted managed investment schemes, ETF issuers must also comply with: • obligations relating to disclosure of portfolio information; • obligations relating to market making; and • where applicable, additional obligations relating to dual access ETFs. AFS licensing requirements RG 282.35 An ETF issuer that is a responsible entity of a registered scheme must hold an AFS licence authorising it to operate the scheme and to provide any other relevant financial services in relation to the scheme and its underlying assets. The authorisation to operate the scheme may either be: (a) an ‘in-kind scheme’ authorisation that permits the responsible entity to operate any number of schemes that hold certain types of assets specified in the authorisation (such as financial assets, commodities or crypto-assets, among others); or (b) a ‘named-scheme’ authorisation that permits the operation of a particular named scheme that holds certain asset types. Note: If the ETF is a sub-fund of a CCIV, the corporate director of the CCIV must hold an AFS licence with the appropriate authorisations to operate the business and conduct the affairs of the CCIV. RG 282.36 The AFS licensing requirements depend on the kind of assets held by the ETF. For example: (a) a ‘financial assets scheme’ authorisation is required where the ETF invests in securities or if the ETF itself is a feeder fund (i.e. it invests in another fund); (b) a ‘derivatives scheme’ authorisation is required where the ETF holds derivatives for hedging or other purposes, other than as incidental property; Page 17 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 17 (c) a ‘commodities scheme’ authorisation is required where the ETF holds raw materials, metals (including precious metals), agricultural products and energy products; and Note: A ‘commodities scheme’ authorisation does not cover financial assets, derivatives, crypto-assets or primary production schemes. (d) a ‘crypto-assets scheme’ authorisation is required where the ETF invests in, or provides direct exposure to, crypto-assets that are not financial products. Note: For more information on crypto-assets, see Information Sheet 225 Crypto-assets (INFO 225) and also RG 282.71–RG 282.72. For more information on various ‘in-kind scheme’ authorisations, see RG 1 at RG 1.65. RG 282.37 If the scheme’s assets do not fit within ASIC’s pre-defined categories of scheme assets, the ETF issuer may need a tailored AFS licence authorisation to operate the scheme. RG 282.38 In addition to ‘operating’ a scheme, an ETF issuer will generally be carrying on dealing activities and may require dealing authorisations on its AFS licence: see the note in RG 1 at RG 1.65 and also RG 36 Licensing: Financial product advice and dealing (RG 36). For example, if the ETF issuer operates a registered scheme that holds securities in the scheme asset holdings, the ETF issuer will generally need an authorisation to deal in securities and issue interests in the scheme to retail clients. Responsible entity obligations RG 282.39 See ASIC webpage Running a registered scheme for an overview of the obligations that apply to ETF issuers that are responsible entities, including obligations under Chapter 5C. Dual access funds RG 282.40 Dual access (also called ‘dual entry-exit’) ETFs allow all investors (not just authorised participants) to: (a) purchase and sell interests in an ETF on the secondary market; or (b) apply and redeem directly with the ETF issuer (on the primary market) by lodging relevant documentation directly with the ETF issuer. RG 282.41 As discussed in Note 1 of RG 282.3, dual access ETFs involve a single class of units that can be traded on-market and be applied for or redeemed directly Page 18 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 18 off-market. A dual access ETF is not a type of investment strategy but represents a structural feature of a type of ETF. RG 282.42 The ETF issuer does not breach the equal treatment duty in s601FC(1)(d) (for registered schemes) or s1224D(2)(b) (for CCIVs) because the members of the ETF have equality of opportunity—that is, members can elect whether to apply or redeem on-market or off-market. No specific equal treatment relief needs to be sought for an ETF issuer wishing to adopt a dual access model, although the constitution, PDS and potentially the TMD will need to reflect this feature. RG 282.43 There may be some practical challenges with offering dual modes of entry or exit as each method entails different custody and settlement market practices. Registry providers must have the ability to satisfy all transfers, registration and settlement requirements of the market operator, as well as the ability to manage applications and redemptions made off-market. Alternatively, an ETF issuer may choose to establish two separate classes of interests, one that can be traded only on-market and the other that can be traded only off-market. RG 282.44 In addition to complying with their disclosure obligations under Ch 7 of the Corporations Act (see RG 282.75–RG 282.77), dual access ETF issuers should clearly disclose: (a) that investors may pay or receive different prices for units in the same ETF, depending on whether they acquire or dispose of the units on- market or off-market; (b) any differences in the treatment of on-market versus off-market investors in relation to: (i) minimum additional investment amounts for initial and additional applications; (ii) entitlements to fractional units under any distribution reinvestment plans; (iii) the treatment of fractional units where an investor elects to convert or transfer units to a CHESS-sponsored account; and (c) any other material differences between acquiring or disposing of units on-market versus off-market. RG 282.45 Dual access funds need to comply with ETP naming conventions: see RG 282.173. Page 19 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 19 Disclosure of portfolio information General RG 282.46 There are different portfolio disclosure models that may be adopted by an ETF issuer, depending on factors such as the extent to which the ETF issuer’s intellectual property needs to be protected. ETF issuers should review the relevant rules and procedures in relation to its disclosure requirements for information about portfolio holdings. Table 2 below sets out the minimum requirements for the different portfolio disclosure models that ETF issuers must follow. Table 2: Portfolio disclosure models of ETFs Market making model Disclosure type Commonly used by Features External Full portfolio holding disclosures (daily) Both index and active ETFs  A complete list of underlying securities and their weightings made publicly available on a daily basis  An iNAV is not generally required*, unless the ETF issuer seeks to rely on the equal treatment relief in ASIC Instrument 2024/147 for unequal treatment in provision of information to authorised participants This information helps the arbitrage activities of market makers. It may also assist retail investors and other market participants to assess the price of the units relative to the NAV *Note: There may be exceptions, depending on market operator requirements. For example, an iNAV may be required for crypto ETFs quoted on the Cboe market that use this model. External Creation/ Redemption Basket (daily) Both index and active ETFs  The creation/redemption or pricing basket is a basket of securities that should generally closely reflect the portfolio of the ETF’s holdings and is created to track the pricing movements of an ETF. It is intended to assist with intraday pricing.  An iNAV is not generally required, unless the ETF issuer seeks to rely on the equal treatment relief in ASIC Instrument 2024/147 for unequal treatment in provision of information to authorised participants This information helps the arbitrage activities of authorised participants Page 20 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 20 Market making model Disclosure type Commonly used by Features External Material portfolio information (MPI) disclosure (varies, generally daily) Active ETFs  Only portfolio information considered ‘material’ is disclosed as negotiated between the ETF issuer and the market maker, and agreed with the market operator, e.g. disclosure of a basket of proxy securities (instead of actual underlying holdings), or other form of MPI. Disclosure of MPI under this model occurs on a daily basis  An iNAV is required—the ETF issuer must also publish an iNAV at least every 15 seconds  The issuer must still disclose the full portfolio holdings, albeit on a delayed basis, at least quarterly with a delay of no more than two months An ETF issuer may choose to adopt this model to the extent necessary to protect its intellectual property in the portfolio composition or proprietary investment strategies Internal Delayed portfolio holding disclosure (amount of delay varies) Active ETFs  Full portfolio disclosure is published on a delayed basis, but at least quarterly with a delay of no more than two months  An iNAV is required—the ETF issuer must also publish an iNAV as frequently as practicable An ETF issuer may choose to adopt this model to the extent necessary to protect its intellectual property in the portfolio composition or proprietary investment strategies Note 1: This table provides a high-level overview of disclosure requirements only. ETF issuers should check the relevant rules and procedures for precise disclosure requirements. Note 2: Dual access ETFs should also refer to the information provided at RG 282.42–RG 282.43. RG 282.47 An ETF issuer should review the relevant rules and procedures in relation to its disclosure requirements. Among other items, ETF issuers could be required to disclose: (a) information about dividends or distributions paid in relation to the ETF; (b) the number and/or value of ETF units issued and redeemed during a reporting month; and (c) periodic financial reports. They may also be subject to Product disclosure statements (PDS) and target market determination (TMD) obligations: see RG 282.75—RG 282.80. Disclosure of full portfolio information RG 282.48 The relevant rules and procedures may require ETF issuers to publish the full portfolio of the ETF’s holdings (or a creation/redemption basket of underlying securities which should generally closely reflect the characteristics of the portfolio of the ETF’s holdings) on a periodic basis, along with the NAV per unit on each trading day. It is generally expected Page 21 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 21 that full portfolio holdings will be disclosed daily (exceptions apply in circumstances where the issuer undertakes internal market making or relies on a creation/redemption basket or a material portfolio information (MPI) disclosure model: see RG 282.51). Note: The NAV for international equity funds may be published after the commencement of the next Australian trading day. RG 282.49 This portfolio transparency provides market makers and authorised participants the ability to create and redeem units in the ETF to maintain liquidity. When there is increased demand relative to supply, the authorised participants apply to the issuer for units (called creation units), which can be settled by delivering a basket of securities or cash. Redemptions occur through a similar process. This process provides an arbitrage mechanism to help bring the value of the units back in line with the net asset value (NAV) under normal market conditions: see RG 282.21–RG 282.25. This portfolio holdings disclosure also allows retail investors and other market participants to assess the price of the units relative to the NAV. RG 282.50 If an issuer is relying on the equal treatment relief in ASIC Instrument 2024/147 when providing information to authorised participants, it must publicly disclose its portfolio holdings or creation/redemption baskets before the start of the trading day after the day on which the disclosure was made to authorised participants: see RG 282.88. Further, issuers of some ETFs must also publish an iNAV regularly (at least every 15 minutes throughout the trading day) if they wish to rely on the equal treatment relief: see RG 282.67–RG 282.68 for further information on iNAVs. In practice issuers generally disseminate iNAV much more frequently than every 15 minutes, noting the exact frequency may vary between issuers and depend on the market-making model adopted. Note: For example, iNAV may be provided at least every 15 seconds for issuers using the MPI disclosure model. The frequency may be even shorter for issuers adopting internal market-making arrangements. Delayed disclosure of portfolio holdings RG 282.51 For active ETFs, it may be permissible for issuers to disclose full portfolio holdings on a delayed basis rather than on a daily basis (e.g. in circumstances involving internal market making or involving the MPI model). A condition of delayed release of portfolio information is that the ETF will be required to publish an iNAV. RG 282.52 Licensed markets are expected to work with ETF issuers to assess the need for and extent of delayed public disclosure in each case, with a minimum requirement of quarterly public disclosure with a delay of no more than two months. Page 22 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 22 Material portfolio information (MPI) disclosure model RG 282.53 Under this model, the issuer agrees with the market maker on the characteristics of the MPI that will be published to the market daily. For example, the MPI could be a basket of proxy assets rather than the actual holdings of the fund. The MPI could also potentially take other forms, such as risk or sector-based disclosures or any other form as agreed between the issuer and market-maker. The proposed MPI disclosure model is also reviewed by the market operator. RG 282.54 Issuers of active ETFs may elect to follow the MPI model if they consider there is a risk that daily disclosure of full portfolio holdings could compromise the intellectual property of the ETF’s portfolio holdings. The MPI model allows the issuer to manage a range of potential risks associated with full daily disclosure (including the potential for pricing of underlying assets or the ETF to be negatively impacted by trading activity based on the disclosures), while avoiding some of the market integrity risks associated with internal market making (see paragraph RG 282.60). RG 282.55 The issuer must disclose: (a) the MPI at the start of each trading day; (b) an iNAV at least every 15 seconds throughout the trading day; (c) the tracking performance between the disclosed MPI and the full portfolio on a quarterly basis; and (d) full portfolio holdings at least quarterly with a delay of no more than two months. Internal market making RG 282.56 In some circumstances, an ETF issuer is permitted to undertake the market making function, as well as performing the role of responsible entity, known as ‘internal market making’. Under an internal market making arrangement, the issuer adopts the role of market maker on the fund’s behalf, rather than using an independent third-party trading participant. Under this arrangement, the issuer must appoint a trading participant to act as execution agent to enter bids and offers in the ETF units throughout the day on behalf of the ETF. At the end of the trading day, a net creation or redemption in the ETF units is performed by the issuer, or their appointed third party, and any profit or loss from the market making activity is attributed to the ETF. RG 282.57 Issuers of active ETFs typically undertake internal market making if they consider there is a risk that others will use the intellectual property of the ETF’s portfolio holdings, for example, by replicating the investment strategy to the ETF’s detriment. RG 282.58 For internal market making ETFs, disclosure of the ETF’s holdings must be provided on a delayed, rather than daily, basis. Without daily portfolio Page 23 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 23 holdings information, external market makers cannot accurately price the ETF and hedge their risk exposures, so the issuer performs the market making function. RG 282.59 ETF issuers that undertake internal market making must comply with their obligations under the Corporations Act, including the prohibitions on market manipulation and insider trading, and the duties to act in the best interests of members, manage conflicts of interest, and maintain procedures for withdrawals that meet the requirements in s601GA(4). Responsible entities should obtain legal advice to ensure that their proposed arrangements comply with the Corporations Act. RG 282.60 To manage market integrity risks associated with internal market making, the responsible entity must: (a) appoint a trading participant to act as execution agent to enter bids and offers in the ETF units throughout the day on behalf of the responsible entity; (b) only use a reference price or other information that is publicly available as the input for market making quotes; (c) establish information barriers between the ETF issuer and execution agent so that bids and offers are not submitted to the market by persons or systems with knowledge of the current portfolio holdings (or in rare and isolated scenarios where such a person must be involved, the bids and offers must not deviate from their standing instructions until the non-public information is disclosed to the public); (d) have adequate arrangements for identifying and responding to instances of substantial information asymmetry in the market which may include cessation of market making activities or requesting a trading halt; and (e) have appropriate compliance and supervision arrangements to support the arrangements. Note: Market integrity risks arising from internal market making include, among other things: • insider trading; • risks associated with conflicts of interest (e.g. an issuer that also acts as internal market maker may be tempted to prioritise its own trading profitability over fair and efficient market functioning by unduly widening bid/ask spreads); • manipulation risks; and • information asymmetry. RG 282.61 iNAVs are also required for ETFs where an agent of the responsible entity conducts the market making in an internal market making arrangement. The provision of an iNAV provides a pricing reference point for the internal market making as the agent is not entitled to have non-publicly available information about the ETF’s portfolio. Page 24 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 24 RG 282.62 For internal market making and delayed disclosure of portfolio holdings, responsible entities must also ensure that: (a) the iNAV is as accurate and frequently disseminated as practicably possible; (b) full portfolio holdings disclosure is delayed only to the extent necessary to protect the fund’s intellectual property; (c) internal market making arrangements support incoming and exiting investors to transact at fair and orderly prices; (d) if the execution agent also provides other services for the issuer (e.g. transaction hedging), the issuer should not provide the execution agent with material non-public information about the ETF’s portfolio holdings in connection with that service unless appropriate information barriers are established to segregate this information from the market making service; and (e) they refrain from using ‘treasury stock’ in the course of conducting internal market making. Note: For more information on market operator requirements for internal market making, see RG 282.151–RG 282.156. RG 282.63 At the end of the trading day, a net creation or redemption in the ETF units is performed by the responsible entity, or their appointed third party, and any profit or loss based on the market making activity is attributed to the ETF. Creation/redemption basket information RG 282.64 Creation/redemption basket information refers to information made available about the securities and/or cash that must be delivered to or received from the ETF issuer in order to create or redeem ETF units. This information assists with the primary market arbitrage activities of authorised participants and market makers: see RG 282.20–RG 282.25. The information is disclosed publicly on a daily basis. Conflicts of interest and material non-public information RG 282.65 As with all registered schemes, ETF issuers are subject to a number of duties relating to conflicts, including the following obligations: (a) If a conflict arises between the interests of the members of the ETF and the responsible entity’s interests, the interests of members must be prioritised under s601FC(1) of the Corporations Act, and there is a similar duty for officers of a responsible entity under s601FD(1). (b) ETF issuers must have adequate arrangements to manage conflicts of interest under s912A(1)(aa): see Regulatory Guide 181 Licensing: Managing conflicts of interest (RG 181). Page 25 REGULATORY GUIDE 282: Exchange traded products © Australian Securities and Investments Commission November 2025 Page 25 RG 282.66 A conflict of interest could arise where the ETF uses an index provided by associates of the ETF issuer. Some ETFs are based on indices designed specifically for a particular ETF. In some cases, the providers that compile and revise these indices may be related parties of the particular ETF issuer. There is a risk that the affiliated index provider changes the index to disguise poor tracking performance figures for the ETF. Indicative NAV (iNAV) RG 282.67 iNAV refers to an indicative NAV that is continually updated during the trading day (as opposed to NAV, which is often updated at the end of the day). An iNAV is only required in certain circumstances, although some ETF issuers may elect to voluntarily publish it. Publication of an iNAV throughout the trading day may assist accurate ‘price discovery’. Many ETF issuers provide an iNAV on their websites as a matter of course to support confidence in their product. iNAV is typically calculated by an external index provider, rather than the ETF issuer itself. The iNAV is generally calculated by adjusting the previous day’s NAV by intraday movements in the prices of the underlying holdings, as an approximation of the current NAV. Typically, ETF issuers can elect to provide to the market a near-continuous iNAV (at least every 15 seconds). The iNAV should be the issuer’s best estimate of the ETP’s value per unit throughout the trading day. The issuer is generally expected to monitor the iNAV during local trading hours. RG 282.68 As noted in RG 282.50 and Table 2, issuers of some ETFs must provide an iNAV regularly to rely on either the equal treatment relief in ASIC Instrument 2024/147, an internal market making arrangement or the MPI disclosure model. The instrument provides a methodology for calculating iNAV. While an iNAV is indicative, publication of the correct NAV close in time to trading on the following days is important to maintain an informed market. ETF