Document details

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  • Reference2014/294
  • Publication Date24/03/2014
  • Creation Date24/03/2014
  • TypeGuidelines and Recommendations
  • SectionsGuidelines and Recommendations, Investment Management

Summary

Reasons for publication

In December 2012, ESMA published the guidelines on ETFs and other UCITS issues (ESMA/2012/832) (hereafter the guidelines). Since the entry into force of the guidelines on 18 February 2013, ESMA has been asked by stakeholders on numerous occasions to reconsider its position on the requirements on collateral diversification (paragraph 43(e) of the guidelines) on the basis that they have a significant adverse impact on UCITS’s collateral management policies. Stakeholders drew particular attention to the consequences for money market funds that place cash into reverse repurchase agreements.

On 20 December 2013, ESMA published a consultation paper (ESMA/2013/1974) in which the Authority set out proposed amendments to paragraph 43(e) of the guidelines.

Contents

Annex I of this final report sets out ESMA’s position on collateral management by UCITS. The guidelines in Annex I modify the rules on collateral diversification in paragraph 43(e) of the existing guidelines and introduce some further consequential changes.

Next steps

The guidelines in Annex I of this report will be translated into the official EU languages and published on the ESMA website. The publication of the translations will trigger a two-month period during which NCAs must notify ESMA whether they comply or intend to comply with the guidelines.