Scientific Beta

Hedge Fund Journal: "As we had feared, the transparency ambitions stated in the draft Regulation and supporting study of the Commission were shattered in the course of the lawmaking process. The resulting opacity is consistent with IOSCO regulations but at odds with the high transparency standards introduced by ESMA for index-tracking UCITS."

Hedge Fund Journal 28/11/2015

"(...) As we had feared (Index Transparency—Recent Regulatory Developments, January 2, 2014), the transparency ambitions stated in the draft Regulation and supporting study of the Commission were shattered in the course of the lawmaking process. The resulting opacity is consistent with IOSCO regulations but at odds with the high transparency standards introduced by ESMA for index-tracking UCITS. At best this will preserve regulatory arbitrage opportunities between UCITS and non-UCITS, at worst it will be the first step towards repelling the exemplary investor protections introduced by ESMA. Either way, it is a dark day for transparency. In the absence of regulatory protection, it will be incumbent on investors and fiduciaries to demand transparency from providers. (...)"