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FPC urges scrutiny of ‘opaque ETF funding structures’

The new regulatory body, at its first meeting, called for better monitoring of the risks posed by ETFs and improved disclosure of banks’ exposure to sovereign debt

The interim Financial Policy Committee, created by the British government to identify and counter systemic risks to the country's financial system, has called on the Financial Services Authority to "closely monitor the risks" posed by opaque funding structures used by exchange-traded funds.

According to the minutes published today of last week's inaugural meeting of the interim committee, which includes FSA chief executive Hector Sants and chairman Adair Turner, the FPC agreed on six policy recommendations.

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