ETF providers hit back at 'hearsay' in the press and regulator concerns about synthetic ETFs

ETF providers have been angered by the continuing focus on synthetic ETFs by regulators such as the Bank of England and the IMF. But they are particularly concerned about the bad press coverage.

The FSA is one of the latest to raise concerns about synthetic ETFs

The spate of recent warnings from European regulators and the press on the dangers that synthetic (or swap-based) exchange-traded funds (ETFs) pose to investors are often unfounded or overplayed and could have an adverse impact on the market, according to some ETF providers.

The Bank of England (BoE) reiterated its warnings on ETFs last week when Paul Fisher, executive director for markets at the central bank, spoke at the Institutional Investor Institute in Bedfordshire.

He said: "ETFs are in