Proposed new rules outlined yesterday by European watchdog the European Securities and Markets Authority which aim to increase the transparency of the European exchange-traded fund market have sparked a mixed response from the industry, disappointing many who had hoped for greater scrutiny of so-called 'synthetic' or complex ETFs.

Gordon Rose, ETF analyst at Morningstar: "The big regulatory shock that many awaited has not happened. In particular, Esma has not issued any recommendations in the way of classifying ETFs between complex and non-complex products, something that would have had implications for all funds regulated under the Undertakings for Collective Investment in Transferable Securities Directive and not just ETFs."