On 16 March 2022, the FCA issued a statement on its website stating that it has begun discussions with stakeholders about options to allow UK authorised retail funds to make exceptional use of ‘side pockets’ given the practical issues in disposing of Russian and Belarussian assets in the context of suspensions and extensive global sanctions.
ECA special report on the single market for investment funds
On 21 February 2022, the European Court of Auditors (ECA) published a special report concerning its findings following an audit during the period 2016 to July 2021 which examined how the EU set up a single market for investment funds. The special report concludes that EU actions have enabled a single market for investment funds
ESMA proposes reforms to improve resilience of MMFs
On 16 February 2022, the European Securities and Markets Authority (ESMA) issued a final report containing an opinion setting out proposed reforms to the regulatory framework for money market funds (MMFs). The final report is the outcome of the work that ESMA conducted on the reforms of the EU MMF regulatory framework in light of
ESMA final report on guidelines on stress test scenarios under the MMF Regulation
On 14 February 2022, the European Securities and Markets Authority (ESMA) issued a final report containing updated guidelines that apply in relation to Article 28 of the Regulation on money market funds and establish common reference parameters for the stress test scenarios to be included in the stress tests conducted by money market funds (MMFs)
ESMA launches a Common Supervisory Action with NCAs on MiFID II costs and charges
On 8 February 2022, the European Securities and Markets Authority (EMSA) announced that it is launching a common supervisory action (CSA) with Member State competent authorities (NCAs) on the application of MiFID II costs and charges disclosure rules across the European Union. This action will allow ESMA and the NCAs to assess the application by
EBA consults on draft guidelines on remuneration and gender pay gap benchmarking exercise for banks and investment firms
On 21 January 2022, the European Banking Authority (EBA) issued a consultation to update its guidelines on the remuneration benchmarking exercise under the Capital Requirements Directive IV (CRD IV), which was originally published in 2012 and updated in 2014.
The review is necessary to take into account additional requirements introduced by the CRD V regarding
EBA consults on updates to its guidelines on data collection exercises regarding high earners
On 21 January 2022, the European Banking Authority (EBA) launched a consultation on updates to its guidelines on the data collection exercise on high earners, which were originally published in 2012 and revised in 2014.
The review of the data collection exercises reflect the amended remuneration framework laid down in the Capital Requirements Directive (CRD
ESMA CSA on the valuation of UCITS and open-ended AIFs across the EU
On 20 January 2022, the European Securities and Markets Authority (ESMA) announced that it was launching a Common Supervisory Action (CSA) with Member State competent authorities on the valuation of UCITS and open-ended Alternative Investment Funds (AIFs) across the EU. Throughout 2022 the CSA will focus on authorised managers of UCITS and open-ended AIFs investing
MIFIDPRU Remuneration Code (SYSC 19G)
On 13 January 2022, the FCA published a new webpage concerning the MIFIDPRU Remuneration Code which applies to MiFIDPRU investment firms for performance periods starting on or after 1 January 2022. The core requirements in the MIFIDPRU Remuneration Code apply to all small and non-interconnected (SNI) MIFIDPRU investment firms, with the requirements applying in full
Policy Statement 28/21 ‘Remuneration: Identification of material risk takers’
On 17 December the PRA published Policy Statement 28/21 ‘Remuneration: Identification of material risk takers’ (PS28/21).
In PS28/21 the PRA provides feedback to responses to Consultation Paper 18/21 ‘Remuneration: Identification of material risk takers’. It also contains the PRA’s final policy, as follows:
- Amendments to the Remuneration Part of the PRA Rulebook, in