On July 25, in a development, which builds on and is complementary to ESMA’s July 25 to ESMA’s Guidelines on ETFs and other UCITS issues discussed above, the European Commission issued a Consultation on issues arising in investment funds. The Commission Consultation focuses on:

  • Eligible assets and the use of derivatives by UCITS funds;
  • Money market funds and their future regulation;
  • The fund industry’s involvement in securities lending and repo arrangements; and
  • The fund industry’s exposure to OTC derivatives that will be subject to central clearing obligation; and
  • The fund industry’s approach to investor redemptions.

The Consultation, also examines UCITS fund managers’ use of efficient portfolio management techniques including securities lending. The Consultation period runs until October 18.

For more information, click here.