ETF services

The global ETF (Exchange Traded Fund) industry is under rapid change, faced with both opportunities and challenges. All areas linked to ETFs are evolving, including products, regulations and distribution channels. Successful ETF firms have to seize opportunities, address challenges and differentiate themselves from increasingly crowded markets across North America, Europe and Asia.

The ETF market is among the most competitive and many promoters as well as new issuers see it as an attractive and modern solution to raise capital and get solid returns on investment. They’re all analysing how the changing environment could impact their business and gear up to face the threats and opportunities to come. Where do you stand?

We have a unique combination of strategy skills, industry knowledge and technical expertise and we’re ready to support you along the way.  

We work with you to create, support and enhance those elements that make your ETF business thrive in an extremely competitive market.

What we offer? A complete project management plan covering all activities related to your business.

You have questions…

What kind of structures do you need to set up?
What services providers do you need to appoint and what are the related contractual setups / fee-flows?
What key dimensions do you need to take into account in terms of regulations, tax (investor types, locations, target investments, VAT, etc.) and constitutive documents?
What is the expected time-to-market?


…we have solutions

Our team, composed of regulatory and tax experts, will provide you with a real one-stop-shop with solutions ranging from the definition of the most efficient target operating model to CSSF licensing:

  • Structural and strategic engineering: we support you in defining the ideal investment vehicle, encompassing financial, tax and business aspects.
  • Documentation preparation: we help you prepare or review all the relevant documents needed to comply with the requirements of the Commission de Surveillance du Secteur Financier (CSSF).
  • Regulatory licensing: we help you with or conduct the application filing with the CSSF.
  • Incorporation: we assist you with regulatory aspects regarding incorporation and launch of your ETF.

You have questions…

Which entities need to be appointed?
How to register and distribute your ETF in Europe or globally?

We work together to maximise your assets and grow your business opportunities by designing and implementing the appropriate ETF product, strategy and distribution channels. You’ll benefit from our understanding of the interconnected processes and specific local and international requirements for a multijurisdictional ETF distribution.


…we have solutions

  • Market Analysis
  • Market Strategy
  • ETF registration

You have questions…

How to get listed on European Stock Exchanges? Which cross-listing strategy to adopt?
What are the listing market trends?

We turn your ETF products into competitive and visible ETF listing strategies. Based on our experience and privileged relationship with major EU-based Stock Exchanges, we'll make sure you’ll get the best of cross-listing strategies and local listing rules.


…we have solutions

  • Listing Strategy
  • ETF listing (Primary listing place analysis)
  • ETF cross-listing

Tax

You have questions…

What is my portfolio tax exposure?
How do I make sure that my tax is properly accrued in my books?
Is my portfolio tax burden optimised / mitigated?
How do I make sure that my delegates (e.g. Custodian) duly manage my tax exposure / compliance / efficiency?
 

…we have solutions

We offer comprehensive, bespoke and efficient tax services at all levels - investors, ETF and investments:

  • Sanity check: substance, residency review and permanent establishment risks;
  • Fund tax compliance: tax representative and tax reporting;
  • Tax awareness and assessment: identification of portfolio taxation, gap analysis, operational tax memo;
  • Tax efficiency: DTT application (upfront/reclaim), “Fokus” claims, investment efficiency;
  • Delegate due diligence: tax processes, controls and responsibilities, gap analysis and assistance with efficient set-up;
  • Investor tax impact analysis of corporation actions (restructuring, mergers, etc.).

Regulatory

You have questions…

Which investors have specific reporting needs?
What are the reporting requirements in different jurisdictions?
What are the reporting trends in the ETF world?


…we have solutions

We assist you throughout the lifetime of your product, providing services, such as the restructuring of the fund, as well as keeping your product compliant with new regulatory developments:

  • Launch of new sub-funds and classes of shares;
  • Amendments to existing constitutive documents;
  • Corporate secretary;
  • Fund on-site support;
  • Restructuring solutions (merger, contribution in kind, liquidations, etc.);
  • Compliance review and awareness;
  • Governance and processes.

Reporting

You have questions…

Which investors have specific reporting needs?
What are the reporting requirements in different jurisdictions?
What are the reporting trends in the ETF world?


…we have solutions

We turn your ETF product into a fully compliant product, responding to your clients’ reporting needs. Based on our experience in successfully conducting reporting assignments for world-leading asset managers and our streamlined, efficient and high quality solution in place, we can prepare the different investor tax and regulatory reporting in a high quality and within the given timeframe.

  • We offer a comprehensive, bespoke and efficient tax reporting service for funds looking to satisfy investor tax reporting in different jurisdictions;
  • We compile the regulatory reporting for credit institutions, insurance companies, pension schemes, offering you the possibility to outsource this service;
  • We advise you on how to prepare the required reports;
  • We certify the reporting prepared for the investor; and
  • We train people on the various reporting topics and issues.

Distribution

You have questions…

How to maintain my ETF registered and listed?
What are the ongoing duties?

Stock exchange listing and maintenance procedures are not harmonised across the European Union, which has instigated complexity for cross-border UCITS ETF distribution strategies. When it comes to the authorisation, distribution, and stock exchange listing requirements, you’ll have to understand and satisfy differing regulatory requirements across multiple jurisdictions.


…we have solutions

We provide you with a complete one-stop-shop solution for your cross-border distribution and listing of UCITS ETF products, including:

  • Assistance with meeting mandatory regulatory deadlines with regulators and stock exchanges
  • Advice on local documentation requirements and changes in listing forms
  • Supervision of publications linked to ETF and listing
  • Monitoring of necessary information and contracts between local agents, distributors and Authorised Participants
  • Systematic update on regulatory reporting and maintenance requirements of the host regulators and stock exchanges

Audit

You have questions…

What’s the purpose of the audit? What’s its added value for the ETF world?

The size of our practice and the diverse ETF structures that we audit enable us to create an efficient audit strategy based on our deep experience and understanding of the industry. Our audit engagement goes beyond its primary objective of giving an opinion on the financial statements in accordance with auditing standards.


…we have solutions

  • For ETF investors: independent opinions and reports that provide assurance on the financial statements.
  • For ETF management: observations and recommendations on financial reporting, accounting, tax and internal control issues from our professionals, including industry best practices.
  • In addition to the audit of financial statements, our assurance services include:
    • Reviewing engagements in the context of interim dividend, contribution in kind, merger, liquidations, review of interim financial information;
    • Assurance reports on controls at a service organisation (controls reports, SSAE 16 reports);
    • Agreed upon procedures reports.

 

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Since 2008, global ETF assets have grown at a compound annual growth rate (CAGR) of 19.2%. In contrast, EU domiciled ETFs experienced faster growth at 23.4%. As of end June 2017 AuM of EU domiciled ETFs surpassed the half billion mark, standing at EUR 567.6 billion.

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Contact us

Carsten Brengel

Exchange Traded Fund Leader, PwC Luxembourg

Tel: +352 49 48 48 2187

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