Date: 1st August 2018
Author: BETTER FINANCE
The European Securities and Markets Authority (ESMA) initiated a peer review and published a report that found that six national competent authorities (NCAs) need to enhance their supervision of Undertakings for Collective Investments in Transferable Securities (UCITS) operating with Efficient Portfolio Management Techniques (EPM).
BETTER FINANCE thanks ESMA and welcomes the action taken on consumer protection: the initiative could constitute a first step towards more transparency and supervisory convergence.
NCAs in Estonia, France, Germany, Ireland, Luxembourg, and the United Kingdom were not fully in line with ESMA’s Guidelines on EPM practices. More specifically the peer review assessed aspects related to operational costs, fees and revenues for EPM as well as collateral management issues.