This week, the industry discussed the possibility of US-listed ETFs being granted the ability to market and distribute in the UK under the post-Brexit Overseas Fund Regime (OFR).
The yet-to-launch regulation will determine which overseas funds should be recognised and accessed by UK retail investors.
US firm Charles Schwab Asset Management currently does not have any ETFs registered in Europe, but said it is “closely watching” regulatory developments in the UK and suggested there is a “tremendous amount of interest” in its existing ETF range.
However, Gavin Haran, head of policy for asset management at Macfarlanes, suggested it may be some time before US ETFs are granted equivalence, with such a move requiring approval from the UK Treasury.
These discussions follow the UK government granting equivalence for all UCITS vehicles in the European Economic Area (EEA) under the OFR in January.
Active leader loses helmsman
Elsewhere, a leadership departure at Europe’s dominant active ETF issuer, as Goldman Sachs Asset Management poaches JP Morgan Asset Management global ETF head Bryon Lake.
Lake’s role at GSAM has yet been confirmed, but his arrival follows the departure of former ETF head Mike Crinieri earlier this year.
After joining JPMAM in 2017, Lake led the firm’s ETF push from 2021. His tenure also coincided with the firm claiming a decisive 44% stake in Europe’s nascent active ETF market.
Nearing a missed opportunity
Finally, the European Parliament has voted to remove the already watered-down ban on financial inducements from the EU’s Retail Investment Strategy (RIS).
Parliament voted through the amendments to the European Commission’s ‘value for money’ rules last week, removing a ban that would have applied to execution-only services.
Inducements – or retrocession fees – are kickbacks financial advisers receive from asset managers for selling their products. The practice is criticised by many for steering investors towards costlier and often less suitable funds.
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