EFAMA has welcomed the publication by the European Securities and Markets Authority (ESMA) of its Consultation Paper setting out future guidelines on UCITS Exchange-Traded Funds (UCITS ETFs) and other UCITS issues.
Broadly speaking, EFAMA supports ESMA’s proposals in favour of increased investor protection through more transparency and additional requirements for securities lending, collateral management and the use of strategy indices. EFAMA also welcomes ESMA’s decision to broaden the scope of its proposed guidelines to all UCITS engaged in the same type of activity, instead of targeting exclusively UCITS ETFs.
Peter De Proft (pictured), Director General of EFAMA, says: “EFAMA acknowledges that this is a well-thought and nuanced approach that will contribute to the continuous improvement of the already robust UCITS framework in order to make all UCITS even safer for investors, which is at the heart of EFAMA’s priorities.
The current paradox, however, is that UCITS in general – and UCITS ETFs in particular – seem to be under more scrutiny from regulators than other non-UCITS exchange-traded products (such as ETNs, for instance) which are much less regulated. EFAMA is concerned with such an imbalanced focus and therefore strongly encourages ESMA and other regulators to focus their attention on such other products. In this vein, EFAMA reiterates its demand for a real level playing field and its support for a PRIPs Directive that would treat equally all retail financial products.”
EFAMA will now, with the support of its members, carefully analyse ESMA’s proposed guidelines in order to provide a detailed answer to the Consultation Paper.
