Efama: Regulators' concerns not unique to ETFs

The European body said although it fully supports initiatives to increase the understanding of ETFs, it urges regulators to scrutinise other products, especially when focusing on systemic risks. The Financial Stability Board warned of recent innovation in the ETF industry bringing "new elements of complexity and opacity" into the market, in its April note entitled Potential financial stability risks arising from recent trends in ETFs. The paper argued the "remarkable" growth of the industry warrants increased attention from both supervisory bodies and the ETF industry as a whole, "inc...