No change in Ireland's ETF regulation

Markets 9/14/2018, 1:32 PM
No change in Ireland's ETF regulation

The Central Bank of Ireland (CBI) declined on Friday the suggestion to ease regulations on exchange-traded funds (ETF) in a statement in response to a discussion paper published in May last year. Investors have been calling for a relaxation of the rules that require them to disclose details of the securities held in ETFs on a daily basis, claiming the measure impedes growth.

ETFs are marketable securities that contain a number of investments packaged together and are traded like a common stock. The ETF industry is the fastest growing type of investment funds in the world, which led regulators to question whether it poses a threat to financial security, especially in Ireland which is the largest center for the funds in Europe.

Gerry Cross, CBI director of policy and risk said that the discussion is not concluded and that the bank will continue its research of ETFs. "We remain firmly of the view that where regulatory change is needed, it is most effective when implemented on a consistent basis," he added.

Breaking the News / MD