ESMA guidelines for securities lending: ‘Gaming’ the regulator?

Abstract

Alan Miller, the CIO of SCM Private, comments on the practice and regulation of securities lending in the UK, following implementation of the European Securities and Markets Authority (ESMA) rules in July 2012, and calls for asset managers to pass on the securities lending income to fund holders for a reasonable fee, which he suggests would be 10 per cent of income or less.