ISLA to respond to Spanish securities lending consultation
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ISLA to respond to Spanish securities lending consultation 18 May 2018Madrid Reporter: Brian Bollen
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The International Securities Lending Association (ISLA) is set to respond to the initiative launched by the Spanish Ministry of Economy regarding securities lending and mutual funds.
The closing date for submissions in response to the ministry鈥檚 consultation document, launched on 24 April, is 18 May. ISLA said it will be submitting a response on behalf of its members.
The consultation proposes a new regulation designed to create a regulatory framework around the implementation of securities lending activity for mutual funds and to redress any competitive disadvantage that Spanish mutual funds suffer compared to other fund domiciles where funds are allowed to lend their assets, explained Mark Hutchings, currently chief operating officer at ISLA.
鈥淲e believe the main objective is to allow mutual funds to offer a better profitability to their investors thanks to the securities lending activity while maintaining the protection of their investment on the other end,鈥� he said.
In a note, ISLA said: 鈥淥ver time, we hope to see a broader acceptance of securities lending in this important European market as we look to the development of the Capital Markets Union agenda across Europe.鈥�
鈥淪ecurities lending not only provides important incremental revenue opportunities to investors, but it also provides a foundation supporting effective price discovery and secondary market liquidity.鈥�
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