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Date Ref. Title Section Type Download Info Summary Related Documents Translated versions
10/11/2016 2016-1563 Issues for consideration in implementing IFRS 9: Financial Instruments , , Statement PDF
256.22 KB
28/01/2016 2016/102 Statement by Steven Maijoor on behalf of the ESAs , Statement PDF
107.74 KB

Statement at the ECON scrutiny hearing on behalf of the ESAs.

30/09/2016 2016/1408 ESMA appoints new chairs to Standing Committees , , , Statement PDF
141.3 KB

The Board of Supervisors of the European Securities and Markets Authority (ESMA) has appointed the following individuals to serve as chairs of its standing committees:

  • Hannelore Lausch, Executive Director of the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), Germany, will chair the Market Data Standing Committee;
  • Cyril Roux, Deputy Governor of the Central Bank of Ireland (CBI, will chair the Investment Management Standing Committee; and
  • Merel van Vroonhoven, Chair of the Autoriteit Financiële Markten (AFM), Netherlands, will chair the Investor Protection and Intermediaries Standing Committee.

The standing committees are expert groups drawn from ESMA staff and the national competent authorities for securities markets regulation in the Member States, and are responsible for the development of policy in their respective areas.  The appointments are for a period of two years and commence with immediate effect.

02/02/2016 2016/165 Public Statement- Supervisory work on potential closet index tracking Statement PDF
258.17 KB

The European Securities and Markets Authority (ESMA) is issuing this statement to inform stakeholders and especially investors about the potential for some European collective investment funds to be ‘closet index trackers’, and to give details on the work that ESMA has been doing in this context.

Introduction

  1. ESMA’s attention was drawn to an alleged practice in the European collective investment management industry whereby asset managers claim, according to their fund rules and investor information documentation, to manage their funds in an active manner while the funds are, in fact, staying very close to a benchmark and therefore implementing an investment strategy which requires less input from the investment manager. At the same time, it is alleged that these funds charge management fees in line with those of funds that are considered to be actively managed[1]. This practice is commonly referred to as ‘closet indexing’ or ‘index hugging’.
  2. In many EU Member States, NCAs have launched or are in the process of launching specific investigations, in addition to their regular monitoring and supervisory functions, to determine the potential extent of closet indexing in their jurisdictions, with a focus on equity funds at this stage. At the same time, the issue has been the subject of considerable attention by investor protection groups and the media throughout the European Union.

Reasons for issuing this statement

  1. The issues around ‘closet indexing’ form part of a broader issue on the effectiveness of investor disclosure and the legitimate expectations of investors in respect of the service provided by some asset managers. Nonetheless, the potential practice of closet indexing in Europe raises questions that merit closer analysis. The analysis carried out by ESMA (see paragraphs 9 to 16 for more details) indicates that there might be a small, but not insignificant number of funds in the EU equity fund sector that may be closet index trackers. If the existence of this practice were to be confirmed by further supervisory scrutiny carried out at national level, this could mean that:
  1. investors could be making investment decisions based on an expectation that they will be provided with a more active fund management service than they receive in practice and, therefore, may be paying higher management fees than that usually envisaged for a passive/not significantly active management service;
  2. investors may be exposed to a different risk/return profile than they expect; and
  3. some asset managers may not provide clear descriptions of how funds are managed in key disclosure documents such as the fund’s Prospectus and Key Investor Information Document (KIID).
  1. ESMA considers it important that fund managers take their commitments in disclosure documents seriously. Managers should expect supervisory consequences where evidence for incorrect disclosures is proven.
 

[1] ESMA recognises that management fees may depend on a number of factors.

20/06/2016 2016/940 Statement by Steven Maijoor at ECON MiFID II/MiFIR Scrutiny Session, 21 June 2016 , Statement PDF
235.65 KB
09/04/2019 2019 19 Joint Committee Annual Report 2018 Annual Report PDF
198.17 KB
25/11/2020 70-155-8842 ESMA statement on DTO Final , Statement PDF
79.5 KB
05/02/2019 ESMA 70-155-7026 Use of UK data in ESMA databases in case of a no-deal Brexit , , Statement PDF
281.69 KB
27/04/2018 ESMA22-103-753 Multilateral MoU on cooperation, information exchange and consultation , Statement PDF
731.24 KB
12/10/2020 ESMA22-105-1248 Steven Maijoor Opening Statement for ECON Hearing 12 October 2020 , , , , , Statement PDF
134.36 KB
07/03/2017 ESMA22-106-140 SMSG advice on the Joint ESMA EBA guidelines on the Assessment of the Suitability , SMSG Advice PDF
150.61 KB

SMSG advice on the Joint ESMA EBA guidelines on the Assessment of the Suitability of Members of the Management Body and Key Function Holders

07/03/2017 ESMA22-106-141 Joint Statement of the SMSG and the BSG on the Draft Guidelines on the Assessment of the Suitability , Statement PDF
91.5 KB

Joint Statement of the SMSG and the BSG on the Draft Guidelines on the Assessment of the Suitability of Members of the Management Body and Key Function Holders

21/01/2020 ESMA22-106-2077 SMSG Advice on Joint Consultation Paper on PRIIPs KID , SMSG Advice PDF
426.62 KB
31/03/2021 ESMA32-63-1156 Public statement Application of TD requirements following Brexit , , , Statement PDF
104.37 KB
09/07/2020 ESMA34-39-109 Public statement on external support within the meaning of Article 35 of the MMF Regulation , Statement PDF
118.34 KB
24/03/2021 ESMA34-43-880 ESMA presents the results of the 2020 Common Supervisory Action (CSA) on UCITS liquidity risk management Statement PDF
153.02 KB
09/04/2020 ESMA34-45-896 Actions to mitigate the impact of COVID-19 on the deadlines for the publication of periodic reports by fund managers , Statement PDF
113.03 KB
27/08/2020 ESMA34-49-184 ESMA’s guidelines on stress test scenarios under the MMFR continue to be applicable until their 2020 update Statement PDF
126.94 KB
12/07/2018 ESMA42-110-998 Timely submission of requests for authorisation in the context of the United Kingdom withdrawing from the European Union , Statement PDF
128.92 KB
21/07/2017 ESMA43-318-752 Statement to European Parliament Petitions Committee Statement PDF
359.62 KB

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