Issue no. 22: ICMA Regulatory Policy Newsletter

product flexibility has driven a steady growth in the use of
ETFs over the past decade. This expansion has been fuelled
by the increase in the range of asset classes accessible
through ETFs. Moreover, the introduction of ETFs covering
emerging markets, commodities and property has allowed
investors to access some of the performing asset classes
of the past few years. On top of greater asset breadth, the
range of instruments has also grown.
The AMIC ETF Working Group believes that it is important for
investors to understand there are various forms of exchangetraded
products (ETPs) which tend to be loosely defined as
“ETFs”. The ETP industry needs to educate investors and be
clearer on the labelling of various ETPs. The main areas of
complexity and opacity relate to instruments often confused
with ETFs – these are ETNs, ETCs and ETVs.
The FSB and other regulators published reports on the
evolution of the ETF market. AMIC responded to the FSB
Note on ETFs.
Contact: Nathalie Aubry-Stacey
nathalie.aubry-stacey@icmagroup.org
Corporate governance
EFAMA has published its Code for External Governance.
This contains a framework of high-level principles and
best practice recommendations to assist investment
management companies engage with the companies in
which they invest. The principles are aimed at improving the
quality of the communication with investee companies and
to foster creation of value to investors by dealing effectively
with concerns over a company’s performance. The Code is
available here.
The European Commission has published its Green Paper
entitled The EU Corporate Governance Framework.
The Commission recognised the importance of the Green
Paper on corporate governance in financial institutions and
remuneration policies adopted in June 2010, but explained
that the solutions envisaged in the June 2010 Green Paper
may not be relevant to EU companies in general. Accordingly,
this Green Paper addresses the following three topics:
•
•
•
the board of directors;
shareholders – and shareholders’ engagement with
management;
how to apply the “comply or explain” approach which
underpins the EU corporate governance framework.
ASSET MANAGEMENT
The AMIC Corporate Governance Working Group will
be responding to the Green Paper. We understand that
legislative proposals following the first Commission Green
Paper on corporate governance in financial institutions will
be published shortly.
Contact: Nathalie Aubry-Stacey
nathalie.aubry-stacey@icmagroup.org
AIFM Directive
The AIFMD is considered at European Securities and
Markets Authority (ESMA) as part of the Level 2 legislative
process which looks at the implementation measures. It was
expected that ESMA would issue technical guidance. ESMA
has broken down its work into four working groups:
•
•
•
•
Depositories – chaired by the AMF, France.
Scope and types of AIFM – chaired by the Central Bank
of Ireland.
Authorisation/delegation/organisational requirements –
chaired by BAFIN, Germany.
Transparency/leverage/risk/liquidity – chaired by the
FSA, UK.
At the last AMIC meeting it was concluded that, although
Level 1 had been agreed, there were still a lot of issues to be
resolved, notably the fact that there was a need for directives
rather than regulation in this space. It is expected that ESMA
will be publishing a Level 2 consultation paper in the course
of July.
Contact: Nathalie Aubry-Stacey
nathalie.aubry-stacey@icmagroup.org
ICMA Regulatory Policy Newsletter Third Quarter 2011 | 29