Politics & Regulation

European regulator continues to review complex UCITS products


The ‘retailisation’ of hedge fund strategies within the UCITS wrapper remains a concern for regulators, according to a new report published by the European Securities and Markets Authority.

The 77-page report sets out future guidelines on UCITS-related issues. This follows a discussion paper published in July 2011 (see earlier story) by ESMA that expressed its concerns about the increasing number of complex products sold to retail investors and the lack of regulatory convergence in relation to the manufacturing and management of such products.

The 77-page report stated: “ESMA highlighted a number of broader issues that arise in the