ESMA hosts workshop for national supervisors on closet indexing

On 27th June 2018, the European Securities and Markets Authority (ESMA) held a supervisors’ workshop for National Competent Authorities (NCAs) to promote supervisory convergence in NCAs’ supervision of closet indexing.

Closet indexing is a practice whereby asset managers claim to manage their funds in an active manner whilst in fact staying very close to a benchmark and charging management fees in line with actively managed funds.

The workshop follows ESMA’s Public Statement on Supervisory Work on Potential Closet Indexing Tracking from February 2016 and its coordination with NCAs to get a comprehensive picture of the outcome of their national initiatives.