Bringing you live news and features since 2006 

ESA proposal threatens to erect new barriers for funds and investors

RELATED TOPICS​

ICI President and CEO Paul Schott Stevens comments on the European Commission’s adoption of a proposal and communication following its review of the European Supervisory Authorities (ESAs)…

As a global association representing the interests of funds and their investors located around the world, ICI strongly supports the goal of supervisory convergence in the European Union. When done properly, supervisory convergence, like that envisioned for the European Securities and Markets Authority, can lower barriers and improve efficiencies in markets to the benefit of funds and investors.

The Commission’s proposed approach, however, risks closing off Europe to third-country fund managers by limiting delegation of asset management functions across borders. This provision is offered despite the clear success of the current delegation model. The proposal also puts at risk the success of UCITS, the only truly global investment product.

While we would welcome greater independence for ESMA, the proposed Executive Board instead looks likely to increase the influence of powerful member states—a problem that must be addressed, as the proposal recognises, before moving to increased centralisation.

Regrettably, the Commission’s approach is likely to inspire policymakers in regions around the world to reconsider terms of access for European managers to their markets. New rounds of protectionism can only harm markets and investors around the world.

Latest News

European ETFs raised USD47.8 billion in Q1, a 15 per cent increase compared to the same period in 2023, according..
LSEG Lipper’s March report finds that globally equity ETFs (+EUR113.2 billion) enjoyed the highest estimated net inflows for the month,..
Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by