EFAMA this week was broadly in agreement with proposals setting out future guidelines on UCITS ETFs and other UCITS issues detailed by the European Securities and Markets Authority (ESMA) in its latest consultation paper. Critically, the decision by ESMA to expand the scope of its proposed guidelines to include all UCITS engaged in similar activity, not just ETFs, was welcomed by EFAMA. In addition, they welcomed ESMA’s proposals to increase investor protection through greater transparency and additional requirements for securities lending, collateral management and the use of strategy indices. There is a paradox at work here though, which EFAMA Director General, Peter De Proft (pictured), highlighted. Namely that UCITS in general, which are well regulated, seem to be under more scrutiny from regulators than other less regulated products such as ETNs. “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 level playing field,” said De Proft. As for the overall intentions outlined in the consultation paper, De Proft was optimistic: “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.”