Further Clarification Published Regarding ESMA Guidelines On EFTs And Other UCITS Issues

On 15 March 2013, the European Securities and Markets Authority ("ESMA") published a questions and answers document (the "Q&A") in relation to the ESMA Guidelines on ETFs and other UCITS issues (the "ESMA Guidelines") which came into effect on 18 February 2013 and have been implemented by the Central Bank of Ireland.

The Q&A sets out a number of important clarifications in relation to the ESMA Guidelines, addressing the application of the UCITS ETF label in the context of umbrella UCITS; direct redemptions by secondary market investors; efficient portfolio management techniques (in particular the payment of fees to securities lending agents); the use of financial derivative instruments; collateral management; investment in financial indices and transitional provisions. We have prepared a briefing note providing further detail in relation to these clarifications which may be accessed here.