Euro regulator resists radical clampdown on ETFs

A consultation paper published today by the European Securities and Markets Authority (ESMA) set out draft rules governing the sale and promotion of ETFs. It proposes ETFs must disclose whether they lend out securities and give greater detail on the collateral they hold. Investors must be informed via products' prospectus, key facts documents and marketing literature how they will meet their stated investment policies, including any intention to outperform an index, ESMA proposes. Some stakeholders had expected tougher proposals, including to divide ETFs into 'complex' and 'non-com...