Despite regulatory focus on ETFs this year, in the open hearing held by Esma yesterday, there was agreement that changes to Ucits should not single out ETFs.
"It seemed that there is a consensus that any new regulation concerning derivatives and securities lending should be applicable to all Ucits and if there are rules regarding tracking error, they should be applicable to all indexed Ucits," says Alain Dubois, chairman of the board at Lyxor. "I think that the purpose of the Esma ETF and structured funds consultation is to improve Ucits regulations, especially as they concern ETFs and structured funds, but not only," says Dubois. "The way they regulate is to have as broad as possible an application." Responses to Esma's discussion pape...
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