AIFMD regulation more suitable for some strategy ETFs, says EC official

EC asset management head proposes regulation of some strategy ETFs under the Alternative Investment Fund Managers Directive, instead of Ucits

The head of the European Commission’s (EC) asset management unit has hinted the Alternative Investment Fund Managers Directive (AIFMD) might provide an alternative framework for selling indexes that aim to replicate a hedge fund strategy, in a move that could catch a number of strategy exchange-traded funds (ETFs).

Strategy-based ETFs are currently regulated under Ucits legislation and use various criteria to identify promising stocks using proprietary methodologies created specifically for the