ESMA: Peer review on the guidelines on ETFs and other UCITS issues

ESMA's report assesses the level of compliance of six national competent authorities (Estonia, France, Germany, Ireland, Luxembourg, the UK) with regard to its guidelines on efficient portfolio management techniques (EPM). It calls for the authorities to ensure a more systematic and formalised review of the required disclosures; to provide more comprehensive internal supervisory guidance on costs, fees and revenues; to ensure that all net revenues from EPM are returned to investors and to revise existing national exemptions to the guidelines on collateral requirements granted in the UK and Germany so that fund assets can only be used for EPM purposes where UCITS receive high-quality and liquid collateral in accordance with the standards set out in the ESMA guidelines.