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Topic: Collective investment schemes

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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

Global Asset Management Quarterly

The latest issue of Global Asset Management Quarterly is now available here. In this issue we cover: UK and European overview Brexit: Financial Services Contracts Regime Brexit: EU Level 3 measures London financial services team client briefing: buy-side focus FCA Asset Management Market Study: FCA tightens the rules further VAT: Apportionment of a single supply … Continue Reading

FCA response to CMA’s investment consultancy market investigation report

On 26 February 2019, the FCA published a letter responding to the Competition and Markets Authority’s (CMA’s) letter of 12 December 2018 which concerned the CMA’s findings and remedies from its market investigation into the supply and acquisition of investment consultancy and fiduciary management services. The FCA’s letter notes that the CMA identified a number … Continue Reading

IA fund communication guidance

On 20 February 2019, the Investment Association (IA) published fund communication guidance. The guidance is part of the industry response to the FCA Asset Management Market Study which highlighted, among other things, the difficulty for customers of knowing what to expect from their fund and how to assess whether or not it was performing against … Continue Reading

FCA Asset Management Market Study: FCA tightens the rules further

Introduction In November 2015, the FCA published the terms of reference for an asset management market study (AMMS). The intention behind the AMMS was to understand how asset managers compete to deliver value to both retail and institutional investors. The FCA published an interim report in November 2016 which was followed up by a final … Continue Reading

Political agreement reached on Regulation and Directive on cross-border distribution of collective investment funds

On 5 February 2019, the Council of the EU announced that political agreement on simpler and quicker cross-border distribution of investment funds had been reached between the Council of the EU and the European Parliament. The proposal, which consists of a draft Regulation and draft Directive, is designed to improve transparency and harmonises diverging national … Continue Reading

ESMA consultation on liquidity stress test guidance for investment funds

On 5 February 2019, the European Securities and Markets Authority (ESMA) issued a consultation paper on draft guidelines regarding liquidity stress tests of investment funds – applicable to alternative investment funds and Undertakings for the Collective Investment in Transferable Securities (UCITS). The consultation has been produced in response to a recommendation by the European Systemic … Continue Reading

Commission adopts Delegated Regulation supplementing EuSEF Regulation

On 1 February 2019, the European Commission adopted a Delegated Regulation supplementing the Regulation on European social entrepreneurship funds (the EuSEF Regulation). The Delegated Regulation: provides for a list of types of conflicts of interest in the context of qualifying social entrepreneurship funds. It covers situations that involve a manager of the qualifying social entrepreneurship … Continue Reading

Erratum to ECON report on proposed Regulation on facilitating cross-border distribution of collective investment funds

On 22 January 2019, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) published an erratum to the report on the proposal for a Regulation of the European Parliament and of the Council on facilitating cross-border distribution of collective investment funds and amending Regulations (EU) No 345/2013 and (EU) No 346/2013. The erratum amends … Continue Reading

Commission report on the operation of AIFMD

On 10 January 2019, the European Commission released a report on the operation of the Alternative Investment Fund Managers Directive (AIFMD). The report confirms that current rules in the AIFMD have significantly contributed to creating a single market for alternative investment funds by establishing a harmonised regulatory and supervisory framework. Most of the AIFMD provisions … Continue Reading

ECON votes on the regulation of cross-border distribution of collective investment funds

On 5 November 2018, the European Parliament published a press release announcing that its Economic and Monetary Affairs Committee (ECON) had voted on provisions for the proposed Regulation and Directive of cross-border distribution of collective investment funds. The new provisions concern cross border distribution of the EU-regulated alternative investment funds (AIFs) and undertakings for collective … Continue Reading

AIFMD guides: The marketing passport and the requirements for fund managers across the EU

We have just updated two guides on the AIFMD, which has now been in force for approximately five years.  Both guides, which are now in their fourth iteration, cover 15 EU jurisdictions – Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden and the UK – with input provided by … Continue Reading

Investment Association principles of remuneration for 2019

On 22 November 2018, the Investment Association (the IA) published an updated Principles of Remuneration (the Principles). In an accompanying letter to remuneration committee chairs, the IA outlines the key changes that have been made to the Principles and areas of focus for the coming year. The key changes are: malus and clawback: the Principles … Continue Reading

IOSCO issue consultation on leverage

On 15 November 2018, the International Organization of Securities Commissions (IOSCO) published a consultation paper on the use of leverage by investment funds (the Consultation). The Consultation responds to recommendation 10 of the Financial Stability Board’s (FSB) report ‘‘Policy Recommendations to Address Structural Vulnerabilities from Asset Management Activities” in which the IOSCO was requested to: … Continue Reading

ESMA consults on draft guidelines for report under the MMF regulation

On 13 November 2018, the European Securities and Markets Authority (ESMA) published a consultation paper on draft guidelines on the reporting to Member State competent authorities (NCAs) under Article 37 of the Money Market Funds (MMF) Regulation. Article 37 of the MMF Regulation obliges the manager of the MMF, for each MMF managed, to report … Continue Reading

Commission responds to ESMA letter on share cancellation under MMF Regulation

On 31 October 2018, there was published a letter from the President of the European Commission (the Letter) to the Chair of the European Securities and Markets Authority (ESMA) on the implementation of the Money Market Funds (MMF) Regulation. The letter responds to ESMA’s Letter on the same topic of 20 July 2018 (see our … Continue Reading
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