RT Journal Article SR Electronic T1 Regulatory Change for ETFs JF ETFs and Indexing FD Institutional Investor Journals SP 146 OP 148 VO 2012 IS 1 A1 Tara O’Reilly YR 2012 UL http://guides.pm-research.com/content/2012/1/146.abstract AB Despite multiple layers of regulation, UCITS exchangetraded funds (ETFs) have been the subject of much scrutiny in recent months. In the face of the continued development of ETF strategies and more sophisticated methods of replication, regulators have grown concerned about the risk of product confusion for investors with additional considerations surrounding counterparty risk, liquidity impacts, and possible destabilizing effects on markets. Despite the fact UCITS ETFs are already highly regulated products and will be affected by the forthcoming MiFID II regime, the European Commission’s Packaged Retail Investment Products initiative, UCITS V, and such local initiatives as the Retail Distribution Review in the U.K., ETFs continue to be the focus of increased scrutiny from both regulators and institutions, such as BIS, the IMF, the FSB, and IOSCO. It is arguable whether the focus should be on ETFs or whether it would be better placed on the sale of investment products and on other products equally sold to retail investors but not subject to a regulatory regime as robust as UCITS.