BETTER FINANCE conducted research on the securities lending practices of the 10 most active European funds in this field, most of which are based in Luxembourg. Even though the rules are clear, the research results have demonstrated wide discrepancies between the funds with regards to the redistribution of the revenues. According to Guillaume Prache, Managing Director of BETTER FINANCE, this raises doubts “on the actual application of the European rule”. The organisation has therefore asked the national authorities as well as ESMA to examine such discrepancies between different fund managers.
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