PRESS RELEASE
BETTER FINANCE
Brussels, 10 June 2022
A report published on Tuesday 31 May 2022 by the European Securities and Markets Authority (ESMA), confirms BETTER FINANCE’s findings that fund managers often don’t seem to act in the best interest of fund investors when it comes to securities lending.
Three years after its first report BETTER FINANCE expanded on its research into securities lending to once more find that fund managers’ “fee split” arrangements, particularly with in-house agents, vary considerably and may be contrary to ESMA’s Guidelines. Such practices could lead to investor detriment and actually constitute a breach of the general duty of care towards “retail” fund investors.