Free Trial Corporate Access

Global Investor Magazine
Global Investor Magazine Copying and distributing are prohibited without permission of the publisher

Asset managers adapt to Esma guidelines

08 May 2014

Recent Esma guidelines on securities lending revenue have forced some change in asset management, according to participants of the Global Investor/ISF UK beneficial owners roundtable

Read more: Esma regulation securities lending beneficial owners asset management


Alastair O’Dell, editor, Global Investor/ISF (chair) John Arnesen, global head of agency lending, BNP Paribas Securities Services Anthony Charlwood, investment officer, Pensions Trust Matthew Chessum, securities lending and repo, Aberdeen Asset Management Simon Lee, managing director, eSecLending David lewis, senior vice-president, SunGard’s Astec AnalyticsO'Dell (chair): Esma set out guidelines that would reduce asset managers’ revenue from securities lending in favour of investors. What solutions are asset managers adopting?

Matthew Chessum: We do not take a fee or share in the revenue from securities lending. But that is not standard in the market – my understanding is other asset managers do. We have made a business decision to return all revenues to the fund.

In my personal opinion, it depends how comfortable you are justifying the fees – that is the crux of the matter. You have to be able to justify the amount of money you are taking for the service that you provide....