At ISLA, we are committed to actively engaging on regulatory developments that impact our members. So, on the 7th of August, we submitted a detailed response to ESMA’s call for evidence on the UCITS Eligible Assets Directive (EAD). You can read the Call for Evidence here: https://lnkd.in/efEGRUfa ISLA used this opportunity to advocate for the recognition of Security Interest over Collateral ‘Pledge’ arrangements in the ESMA guidelines, as opposed to only allowing UCITS funds to accept collateral by Title Transfer. ISLA believes this has been an interpretational challenge, as the guidelines do already consider ‘other types of collateral arrangement’ and thus we are seeking clarification. We believe that by enabling use of such agreements, this increases the attractiveness of UCITS as a source for borrowing, without reducing the levels of investor protection. We look forward to progressing our dialogue with ESMA and other stakeholders to ensure that the regulatory environment for UCITS evolves. ISLA’s Regulatory Steering Group leads discussions on UCITS and other regulatory matters – If you are an ISLA member and would like to get involved in these discussions, you can sign up here: https://lnkd.in/ej73_ckJ If you have any queries, please contact Farrah Mahmood, Director of Regulatory Affairs. #ISLANews #UCITS #SecuritiesLending #Advocacy
Matthew Chessum
2mo
Great work Farrah Mahmood
Director of Regulatory Affairs at the International Securities Lending Association (ISLA)
2moThanks Matthew Chessum - Fingers crossed we can make some progress here!