Regulation

UCITS not shadow banking

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It is inappropriate to brand an international fund structure like UCITS with shadow banking, according to John Parkhouse from top accounting firm PWC.

In a debate about the shadow banking industry, PWC partner Parkhouse told the audience at the at the Association of the Luxembourg Fund Industry’s European alternative investment funds conference there is a parallel – not a shadow banking system.

He said: “Regulators need to understand that it is inappropriate for a globally branded structure like UCITS to be lumped in with shadow banking [because of its] negative connation type-description.”

Xavier Zaegel from Deliotte added that the fund