Robust governance, transparency and integrity have always been at the foundation of our business
The anticipated regulation of benchmarks as well as stakeholder-demanded governance improvements mean that strong governance is a primary concern for our clients. We are committed to leading global best practice standards in index governance and have established a reputation for transparent, robust and rules-driven index construction.
Our control and governance framework
FTSE Russell has a control and governance framework that benefits from strong internal governance operated through working groups formed of knowledgeable, experienced professionals who report into the FTSE Russell governance structure. Strong external oversight is also provided through advisory committees formed of senior, experienced market practitioners and stakeholders.
IOSCO Statement of Compliance
FTSE Russell has issued a Statement of Compliance with respect to the recommendations made by the International Organization of Securities Commissions (IOSCO) in the Principles for Financial Benchmarks Final Report (the IOSCO Principles). Independent assurance of the assertions by FTSE Russell in its Statement of Compliance has been received from KPMG LLP. FTSE Russell fully embraces the IOSCO Principles and endorses IOSCO’s objective to address conflicts of interest in the benchmark-setting process, enhance the reliability of benchmark determinations, and promote transparency and openness.
ESMA Guidelines on ETFs and other UCITS issues
ESMA’s guidelines on ETFs and other UCITS issues, first published in December 2013 and updated in August 2014, require that the financial indexes that form the basis of index-tracking UCITS should meet certain requirements with respect to, inter alia, diversification limits, the transparency of the methodology, and the availability of the weights of the index constituents.
To assist our clients in undertaking a compliance review of the financial indexes that form the basis of their UCITS and UCITS ETFs products, FTSE Russell has published a statement that summarises FTSE Russell’s position in relation to the ESMA Guidelines. The weights of the constituents for Russell indexes can be found here, and the weights of constituents of FTSE indexes can be found here.