ESMA consultation paper provides insight into the future specific disclosure requirements for UCITS ETFs and other types of index-tracking UCITS
On 30 January 2012, the European Securities and Markets Authority (“ESMA”) published a consultation papersetting out future draft guidelines on a number of topics relating to certain types of Undertakings for Collective Investment in Transferable Securities (“UCITS”), namely:
(a) prospectus, annual and half-yearly disclosure for UCITS using index-tracking strategies;
(b) prospectus and Key Investor Information disclosure for UCITS using leveraged index-tracking strategies;
(c) the employment of so-called “efficient portfolio management techniques” by UCITS and related disclosure requirements;
(d) the use of total return swaps by UCITS and related disclosure requirements;
(e) specific rules for UCITS gaining exposure to an index that aims at replicating a quantitative or a trading strategy; and
(f) definition of “UCITS Exchange-Traded Funds” (“UCITS ETFs”) and related specific rules and disclosure requirements (including rules designed to protect investors when redeeming units in UCITS ETFs).
(a) prospectus, annual and half-yearly disclosure for UCITS using index-tracking strategies;
(b) prospectus and Key Investor Information disclosure for UCITS using leveraged index-tracking strategies;
(c) the employment of so-called “efficient portfolio management techniques” by UCITS and related disclosure requirements;
(d) the use of total return swaps by UCITS and related disclosure requirements;
(e) specific rules for UCITS gaining exposure to an index that aims at replicating a quantitative or a trading strategy; and
(f) definition of “UCITS Exchange-Traded Funds” (“UCITS ETFs”) and related specific rules and disclosure requirements (including rules designed to protect investors when redeeming units in UCITS ETFs).