Regulator and supervisor the European Securities and Markets Authority (ESMA) has now published its awaited advice to the European Commission (EC) on its review of the UCITS Eligible Assets Directive (EAD), in which it says its conceptual view is that some alternative assets such as catastrophe bonds may sit better under a different framework than UCITS.
ESMA launched a call for evidence on UCITS eligible assets back in May this year, asking for information from stakeholders to assess any possible risk and benefits of UCITS gaining exposure to certain alternative asset classes.
Catastrophe bonds remain a relatively small component of the overall UCITS fund assets universe, which by ESMA’s numbers consist of more than €9 trillion of assets under management.
FULL ORIGINAL PUBLICATION HERE
