Introduction

In our briefing paper of 11 September we explained that the European and Securities Markets Authority (ESMA) had issued guidelines for certain types of Undertakings for Collective Investment in Transferable Securities (UCITS), including UCITS Exchange- Traded Funds (ETFs), and other UCITS-related issues (ETF Guidelines). The ETF Guidelines were to apply from two months after the date of their official publication on ESMA's website (Application Date). ESMA did not immediately publish its ETF Guidelines, instead engaging in a consultation process, leading to the issuance of ESMA's guidelines on repurchase and reverse repurchase agreements (Repo Guidelines). For more information on the Repo Guidelines please refer to our briefing of 11 December.

ESMA has today, 18 December, published guidelines that consolidate its ETF Guidelines and Repo Guidelines. These consolidated guidelines can be found here.

Application Date

The Application Date is two months from today. Before the Application Date national supervisors must declare to ESMA whether they intend to comply with the guidelines or otherwise explain the reasons for non-compliance. The Central Bank has indicated that it intends to introduce the guidelines through amended UCITS Notices, which it intends to issue before the Application Date.

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