Potential Regulatory Developments for Irish ETFs

May 02, 2018

The Central Bank of Ireland (the “Central Bank”) has announced that it will release a feedback statement later this year in response to its 2017 Discussion Paper on ETFs (the “Discussion Paper”) and the general work it has performed related to ETFs in the last year. The Central Bank has outlined it primarily intends to use the feedback it has received to assist in contributing to the International Organization of Securities Commissions (“IOSCO”) review of the 2013 IOSCO ETF Principles and in general in contributing to the international debate that is ongoing with respect to ETFs.

However, importantly the Central Bank has also indicated that there are several matters raised within the Discussion Paper where it may look to take the initiative prior to any IOSCO or other international developments in the area. Accordingly, there may be potential developments for Irish authorised ETFs in the areas of (i) disclosure of portfolio holdings, (ii) ETF and non-ETF share classes and (iii) differing dealing deadlines for hedged and unhedged share classes. Further analysis of each point is outlined in this update. 

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