EUROPE: ESMA publishes final revised guidelines on ETFs and other UCITS issues

Monday March 24 2014

The European Securities and Markets Authority (ESMA) has published revised guidelines on exchange-traded funds (ETFs) and other UCITS issues. The original guidelines were published in December 2012, but requests from market participants for ESMA to reconsider its position on the requirements on collateral diversification led ESMA to launch a consultation on their revision in December 2013.

ESMA has now published its final report setting out its position on collateral management by UCITS. The guidelines in the final report modify the rules on collateral diversification in paragraph 43(e) of the guidelines.

The guidelines will be translated into the official EU languages and published on the ESMA website. The publication of the translations will trigger a two-month period during which NCAs must notify ESMA whether they comply or intend to comply with the guidelines.

Click on the above link for the report.