The European Securities Markets Authority, ESMA, has published proposals for new EU rules on exchange traded funds and rules for other mutual funds, such as index funds. The sharp increase in the number ofexchange traded funds (ETFs) and funds that use complex investment techniques in Europe has led ESMA to review the rules for these funds.

ESMA are now accepting comments on its proposal until March 30 2012.
In July last year, ESMA, published a consultation paper with proposed guidelines for these types of funds that then went out on a referral. Yesterday’s proposals are the next steps in the Authority’s efforts to develop European rules in the field.

EDHEC-Risk Institute welcomes the new rule proposals on ETFs from ESMA, pointing among other things, the broader context of the authority selected in their regulatory proposals, according to a press release from yesterday.

Read more on the subject from ESMA’s page here