their own shares, hybrid securities, or debt to their depositors, a practice known as “self-placement”—in some countries, many small savers were told such products were as safe as bank deposits. Another example is funds claiming to be actively managed, and charging high fees, when they are merely tracking an index—ESMA estimates that as many as 5–15 percent of UCITS equity funds may be “closet indexers” ( ESMA 2016 ). 60. The ESAs are guided by a unified set of EU capital market rules, the so-called single rulebook . Level 1 measures comprise EU directives and
Markets Authority (ESMA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Banking Authority (EBA)—foster harmonized practices. ESMA has played an increasingly important role in the regulation and supervision of capital markets in the EU in recent years and is responsible for direct supervision of credit rating agencies, trade repositories, securitization repositories and third country central counterparties. 25. The ESAs are guided by a unified set of EU capital market rules, the so-called single rulebook . This rulebook comprises