BlackRock’s Novick calls for tiered ETF regulation

Vanilla and exotic products should be treated differently, BlackRock co-founder argues

Simple ETFs should receive speedy approval

A co-founder of BlackRock has called for a tiered regulatory regime for exchange-traded funds (ETFs) that discriminates between simple and complex varieties.

Barbara Novick, a vice-chairman at BlackRock, said a custom-made package of rules for ETFs should allow for the speedy approval of plain vanilla products, while a more rigorous approach is reserved for more exotic products.

"The vanilla category could have a ‘speed pass' and we could take everyone's resources and focus them on the riskier f