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Topic: Collective investment schemes

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ESMA issues second annual report on penalties and measures issued under UCITS Directive

On 12 December 2019, the European Securities and Markets Authority (ESMA) published its second annual report on sanctions (penalties and measures) imposed by Member State competent authorities (NCAs) under the Undertakings for Collective Investments in Transferable Securities (UCITS) Directive. The report covers the period from January to December 2018. ESMA found that the number of … Continue Reading

ESMA report on the responses to its consultation on the ELTIF Regulation

On 10 December 2019, the European Securities and Markets Authority (ESMA) published its final report on the draft regulatory technical standards (RTS) under Article 25 of the Regulation on European long-term investment funds (ELTIF Regulation). Article 25(3) of the ELTIF Regulation provides that ESMA shall develop RTS to determine the costs disclosure requirements applicable to … Continue Reading

ESMA updates Q&As on AIFMD

On 4 December 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on the application of the Alternative Investment Fund Managers Directive (AIFMD). The updated Q&As insert a new question and answer into Section III on reporting to national competent authorities under Articles 3, 24 and 42, explaining how … Continue Reading

New Global Asset Management webinar: Europe – Member State domestic regimes

In the second webinar of our global asset management series, our team from the UK, Germany, France, the Netherlands, Italy and Luxembourg provide their insight and views on their domestic regime’s approach to marketing, investors and structure. The webinar can be viewed here. For further information, please visit our Asset Management Regulation hub that houses … Continue Reading

FCA asks Authorised Fund Managers to review their liquidity management arrangements

On 4 November 2019, the FCA published a letter sent by the head of its Asset Management Department, Nick Miller, to the Chairs of Authorised Fund Managers (AFMs) in relation to good practices for effective liquidity management. Mr Miller starts by stressing that AFMs are responsible for ensuring effective fund liquidity, even if investment management … Continue Reading

FCA Policy Statement on illiquid assets and open-ended funds

On 30 September 2019, the FCA published Policy Statement 19/24: Illiquid assets and open-ended funds and feedback to Consultation Paper 18/27 (PS19/24). In October 2018, the FCA consulted on changes intended to reduce the risk of poor outcomes to retail investors in open-ended funds, specifically non-UCITS retail schemes (NURSs), that invest in illiquid assets (see … Continue Reading

FCA findings from unit-linked funds’ governance review

On 24 September 2019, the FCA published a webpage setting out its key findings and next steps in relation to its review of firms’ governance practices covering the value provided by unit-linked funds. These funds can be described as funds whose performance determines the benefits due to holders of unit-linked insurance contracts. In an earlier policy statement … Continue Reading

First Addendum to MoU between SFC and FCA

On 12 September 2019, the FCA published the First Addendum to the Memorandum of Understanding (MoU) between the Securities and Futures Commission of Hong Kong (SFC) and the FCA. The SFC and the FCA are parties to an MoU concerning Mutual Recognition of Covered Funds and Covered Management Companies and related Cooperation dated 8 October … Continue Reading

ESMA publishes stress simulation framework for investment funds

On 2 September 2019, the European Securities and Markets Authority (ESMA) published a final report on guidelines on liquidity stress testing in UCITS and AIFs (the Guidelines). In April 2018, the European Systemic Risk Board (ESRB) published a set of recommendations to address liquidity and leverage risk in investment funds. One of the ESRB’s recommendations … Continue Reading

FCA announces changes to AIFMs’ submission of notification and material change under NPPR

On 3 September 2019, the FCA updated its webpage on the national private placement regime (NPPR). The FCA reports that on 9 September 2019, it will be introducing changes to the submission of notifications by alternative investment fund managers (AIFMs) marketing alternative investment funds (AIFs) under Regulations 57, 58, 59 of the Alternative Investment Fund … Continue Reading

ESMA final guidance on liquidity stress test guidance for investment funds

On 2 September 2019, the European Securities and Markets Authority (ESMA) published its final guidance regarding liquidity stress testing of investment funds – applicable to Alternative Investment Funds (AIFs) and Undertakings for the Collective Investments in Transferable Securities (UCITS). The report follows an earlier consultation in February 2019 (see previous blog post here) on draft … Continue Reading

FCA letter on UK specific UCITS liquidity standards

On 7 August 2019, the FCA published a letter (dated 6 August 2019) from Andrew Bailey, FCA Chief Executive, in response to Lord Myners’ written question asking if the Government has ever formally reviewed the case for the UK establishing its own requirements for liquidity standards for UCITS at higher levels than specified in EU … Continue Reading

IOSCO statement on liquidity risk management recommendations

On 18 July 2019, the International Organization of Securities Commissions (IOSCO) published a statement that explains why its 2018 Liquidity Risk Management Recommendations (2018 LRM Recommendations) provide a comprehensive framework for regulators to deal with liquidity risks in investment funds. The statement follows recent media coverage of liquidity problems that have recently affected some investment … Continue Reading

ESMA consults on draft guidelines on performance fees in UCITS

On 16 July 2019, the European Securities and Markets Authority (ESMA) issued a public consultation on draft guidelines on performance fees under the Undertakings for Collective Investment in Transferable Securities (UCITS) Directive. The draft guidelines aim to improve harmonisation in the way in which performance fees can be charged to UCITS. This follows a mapping … Continue Reading

Global Asset Management Quarterly

The latest issue of Global Asset Management Quarterly is now available here. In this issue we cover: Sustainable finance is a trend set to stay Brexit: latest developments Luxemburg update Ireland update The proposed Australian corporate collective investment vehicle SFC raises disclosure requirements for Green or ESG funds Mutual recognition of funds: Netherland – Hong … Continue Reading

ESMA updates Q&As on application of AIFMD

On 4 June 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on the Alternative Investment Fund Managers Directive (AIFMD). Five new Q&As have been inserted under Section VI regarding depositories, namely asking: Under recital 42 of AIFMD, what are ‘supporting tasks that are linked to depositary tasks such … Continue Reading

ESMA updates Q&As on application of UCITS Directive

On 4 June 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on the Undertakings for Collective Investment in Transferable Securities (UCITS) Directive. Five new Q&As have been inserted, regarding: the distinction between depositary tasks and mere supporting tasks; depositary tasks entrusted to third parties; performance of depositary functions … Continue Reading

FCA welcomes launch of finalised CTI templates

On 7 November 2018, the Cost Transparency Initiative (CTI) was launched. The CTI is an independent group working to improve cost transparency for institutional investors with the responsibility for progressing the work already undertaken by the Institutional Disclosure Working Group. On 22 May 2019, the FCA published a statement welcoming the launch of the CTI finalised templates … Continue Reading

Delegated Regulations on conflicts of interest in European funds published in OJ

On 22 May 2019, there was published in the Official Journal of the EU (OJ) two Delegated Regulations concerning conflicts of interests in European funds: Commission Delegated Regulation (EU) 2019/819 of 1 February 2019 supplementing Regulation (EU) No 346/2013 of the European Parliament and of the Council with regard to conflicts of interest, social impact … Continue Reading

FCA supervisory findings about principals and appointed representatives in the investment management sector

On 20 May 2019, the FCA published a webpage setting out the findings of its supervisory review of principal firms in the investment management sector. The review was carried out following a similar review in the insurance sector which identified shortcomings in the control and oversight of appointed representatives (ARs) by their principal firms. More … Continue Reading

FCA updates NPPR notification process

On 2 May 2019, the FCA updated its webpage on the national private placement regime (NPPR). The NPPR allows some Alternative Investment Fund Managers (AIFMs) to market certain categories of Alternative Investment Funds (AIFs) in the UK in accordance with the Alternative Investment Fund Managers Regulations 2013 (the Regulations). The updated webpage notes that AIFMs … Continue Reading

ESMA issues first pan-EU overview of use of supervisory sanctions for UCITS

On 4 April 2019, the European Securities and Markets Authority (ESMA) issued its first annual report on sanctions imposed by Member State competent authorities (NCAs) under the UCITS Directive. The report provides an aggregated overview of the penalties and measures issued under the UCITS Directive for 2016/2017, based on data submitted to ESMA by NCAs.… Continue Reading

ESMA updates Q&As on UCITS, AIFMD and MAR

On 29 March 2019, the European Securities and Markets Authority updated its Q&As on: the UCITS Directive. Specifically, the Q&As clarify the UCITS KIID benchmark and past performance obligations; the Alternative Investment Fund Managers Directive. New Q&As have been added on the calculation of leverage; and the Market Abuse Regulation. New Q&As have been added … Continue Reading

ESMA consults on draft RTS on ELTIF costs disclosure

On 28 March 2019, the European Securities and Markets Authority (ESMA) published a consultation paper on draft regulatory technical standards (RTS) under Article 25 of the European Long-Term Investment Funds Regulation (ELTIF Regulation). Article 25(3) of the ELTIF Regulation provides for ESMA to develop draft RTS to determine the costs disclosure requirements applicable to ELTIF managers. … Continue Reading
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