Feedback Statement on Discussion Paper 6 - Exchange Traded Funds

The Central Bank has published a feedback statement in relation to Exchange Traded Funds (ETFs).  This Feedback Statement is in response to the Central Bank’s Discussion Paper 6 –Exchange Traded Funds (DP6), which was published in May 2017.

The Central Bank undertook this initiative in order to highlight areas where further regulatory consideration and discussion is warranted.  The responses received to DP6 provided a good insight into the design features, dealing mechanisms and operating models that exist in the global ETF environment today, and what implications these may have for ETFs, particularly in stressed market conditions. This feedback will inform the Central Bank’s approach in the ongoing debates in European and international policy forums.

Arising from this review, there are a number of regulatory outcomes for Irish ETFs:

1. Different dealing times will be permitted for hedged and unhedged share classes within the same ETF;
2. Investment funds can establish both listed and unlisted share classes within a single fund structure, subject to disclosure requirements; and
3. There will be no change in the requirement to have daily portfolio disclosure at this time.