RIMES, a leader in managed data services, has flagged the challenges presented by the European Securities and Markets Authority’s (ESMA) consolidated guidelines on ETFs and other UCITS issues to investment managers throughout Europe.
Continual product innovation and sophisticated investment techniques in the UCITS funds market has continued to focus the regulators’ attention on these structures, and as a result ESMA's new guidelines on ETFs and other UCITS came into effect in February.
While the guidelines seek to strengthen investor protection, mitigate counterparty risk and increase transparency and disclosure to investors, they also have a major impact on managers of UCITS, ETFs and particularly index-tracking UCITS.
RIMES offers all the data, technology and expertise to enable UCITS managers to become more efficient at all aspects of index management, including sourcing, managing, validating, storing and distributing data throughout the enterprise.
Andrew Knowles, Head of Compliance Services at RIMES comments: “The reporting and disclosure requirements in ESMA’s recent guidelines are wider reaching and far more daunting than anticipated by many within the industry.”
“Among the requirements, firms managing UCITS must access and reference in their fund documentation links to constituent level data along with security weights for any UCITS funds investing in financial indices and not only index tracking UCITS as originally foreseen. RIMES can help UCITS managers meet the detailed requirements of the guidelines without a major investment in technology or people.”