It’s surely not a surprise that Europe’s financial market rulemakers are turning their attention to ETFs. After all, exchange-traded funds have been a hot topic for US regulators for a while. But what do recent comments from the Bank of England and the head of CESR portend?
In its latest Financial Stability Report, issued two weeks ago, the UK’s central bank fired a shot across the bows of the ETF industry by warning against “overreach” in ETF innovation.
Then Eddy Wymeersch, the chairman of the Committee of European Securities Regulators (CESR), called for more transparency in both ETFs and alternative UCITS funds (often labelled “Newcits”) at last week’s Fund Forum in Monaco, according to Baptiste Aboulian of the Financial Times.
