United Kingdom

Topic: Collective investment schemes

Subscribe to Collective investment schemes RSS feed

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 … Continue Reading

New online briefing note – European Commission’s AIFMD legislative proposal: Focus on delegation

We have published a new online briefing note on the European Commission’s AIFMD legislative proposal focussing on delegation.… Continue Reading

Commission proposal to amend ELTIF Regulation

On 25 November 2021, the European Commission published a proposal for a Regulation amending the Regulation on European long-term investment funds (ELTIFs). The changes relate to the scope of eligible assets and investments, the portfolio composition and diversification requirements, the borrowing of cash and other fund rules and as regards requirements pertaining to the authorisation, … Continue Reading

Commission proposal regarding delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination by AIFs

On 25 November 2021, the European Commission published a proposal for a Directive that would amend the Alternative Investment Funds Managers Directive (AIFMD) and UCITS Directive as regards delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination by alternative investment funds. Pages 11 to 16 of the proposal … Continue Reading

nvestment Association/Norton Rose Fulbright: Model Discretionary Investment Management Agreement (V 3.0)

On 4 November 2021, the Investment Association published version 3.0 of its model discretional investment management agreement, in co-operation with Norton Rose Fulbright. The model agreement is a template agreement relating to the appointment of a discretionary investment manager by a client that has been categorised by the manager as a professional client. The model … Continue Reading

European Parliament draft reports

On 18 October 2021, the European Parliament published the following reports: Draft Report on the proposal for a directive of the European Parliament and of the Council amending Directive 2009/65/EC as regards the use of key information documents by management companies of undertakings for collective investment in transferable securities (UCITS) (PE697.633v01-00) (dated 14 October 2021). … Continue Reading

FSB report – Policy proposals to enhance money market fund resilience

On 11 October 2021, the Financial Stability Board (FSB) published a report which forms a key part of its work programme on non-bank financial intermediation. The policy proposals in the report aim to address systematic risk and minimise the need for future extraordinary central bank interventions to support the sector alongside enhancing money market fund … Continue Reading

Commission consultation on amendments to UCITS Directive on PRIIPs KID exemption

On 5 August 2021, the European Commission issued for consultation a draft Directive amending the UCITS Directive as regards the use of key information documents by management companies of undertakings for collective investment in transferable securities. The draft Directive inserts a new Article 82a in the UCITS Directive. The Article provides that where a key … Continue Reading

ESMA publishes official translations of guidelines for funds’ marketing communications

On 2 August 2021, the European Securities and Markets Authority (ESMA) published the official translations of its guidelines for funds’ marketing communications under Article 4 of the Regulation on the cross-border distribution of collective investment undertakings. The guidelines will apply from six months after the date of the publication of the translations.… Continue Reading

Draft Directive amending UCITS IV Directive as regards the use of key information documents by management companies of undertakings for collective investment in transferable securities

On 16 July 2021, the European Commission adopted a Directive that amends the UCITS IV Directive as regards the use of key information documents by management companies of undertakings for collective investment in transferable securities (UCITS). Article 32 of Regulation No 1286/2014 on key information documents for packaged retail and insurance-based investment products provides for … Continue Reading

Assessing the resilience of market-based finance

On 13 July 2021, the Bank of England (BoE) and the FCA published a report on assessing the resilience of market-based finance.  The report includes the conclusions of the joint FCA and BoE review into vulnerabilities associated with liquidity mismatch in open-ended funds. In particular, the BoE and the FCA have put forward a suggested … Continue Reading

FSB consults on MMF resilience

On 30 June 2021, the Financial Stability Board issued a consultation report setting out policy proposals to enhance money market fund (MMF) resilience, including with respect to the appropriate structure of the sector and of underlying short-term funding markets. The report considers the likely effects of a broad range of policy options to address MMF … Continue Reading

ESMA guidelines under Article 25 AIFMD

On 23 June 2021, the European Securities and Markets Authority’s guidelines on Article 25 of the Alternative Investment Fund Managers Directive were translated into the official EU languages. The guidelines apply from 23 August 2021.… Continue Reading

Commission proposes amendments to the Delegated Regulation on investment requirements under MMF Regulation

On 15 June 2021, the European Commission adopted a Delegated Regulation amending Delegated Regulation 2018/990 with regard to requirements for assets received by money market funds as part of reverse repurchase agreements. The Regulation on Money Markets Funds (MMF Regulation) lays down rules on authorisation of money market funds that cover, among other things, eligible … Continue Reading

Published in OJ – Commission Implementing Regulation setting out ITS under the Regulation on cross-border distribution of investment funds

On 15 June 2021, there was published in the Official Journal of the EU Commission Implementing Regulation (EU) 2021/955 of 27 May 2021 setting out implementing technical standards (ITS) in accordance with Articles 5(3), 10(3) and 13(3) of the Regulation on cross-border distribution of investment funds. The ITS in the Commission Implementing Regulation concern the … Continue Reading

ESMA opinion – collection of information for the effective monitoring of systemic risk under Article 24(5) AIFMD

On 28 May 2021, the European Securities and Markets Authority (ESMA) updated its opinion on the collection of information for the effective monitoring of systemic risk under Article 24(5), first sub-paragraph, of the Alternative Investment Fund Managers Directive (AIFMD). In the updated opinion ESMA provides additional information that Member State competent authorities could require alternative … Continue Reading

ESMA publishes guidance on funds’ marketing communications

On 27 May 2021, the European Securities and Markets Authority (ESMA) published a final report containing guidelines that specify the application of the requirements for marketing communications set out in Article 4(1) of the Regulation on the cross-border distribution of funds. In particular the guidelines establish common principles on the identification as such of marketing … Continue Reading

Taking our second chance to make MMFs more resilient – speech by Andrew Bailey

On 12 May 2021, the Bank of England published a speech by Andrew Bailey entitled Taking our second chance to make MMFs more resilient. In his speech Mr Bailey explains how money market funds (MMFs) magnified some of the economic shocks caused by the COVID-19 pandemic. He also discusses the ways regulators around the world … Continue Reading

FCA launches consultation on a new type of fund to support investment in long-term assets

On 7 May 2021, the FCA published Consultation Paper 21/12: A new authorised fund regime for investing in long term assets (CP21/12). In CP21/12 the FCA sets out proposals for a new category of authorised open-ended fund called the long-term asset fund (LTAF). This is designed to enable authorised funds to be set up to … Continue Reading

Joint Association Letter on the use of EEA UCITS as Collateral

On 19 April 2021, ISDA, the Alternative Investment Management Association, Investment Company Institute, the Institutional Money Market Funds Association and SIFMA’s Asset Management Group sent a letter to the Bank of England, FCA and HM Treasury to ask them to permit EEA UCITS to be used as collateral in their non-cleared derivatives business. Under the … Continue Reading

ESMA report highlights liquidity concerns for Alternative Investment Funds

On 8 April 2021, the European Securities and Markets Authority (ESMA) issued its third annual statistical report on the alternative investment fund (AIF) sector. The report has found that the sector increased by 15% in 2019 to EUR 6.8trn in net assets from EUR 5.9trn in 2018. The main findings in the report include: The … Continue Reading

ESMA updates AIFMD Q&As

On 30 March 2021, the European Securities and Markets Authority (ESMA) updated its Q&As on the application of the Alternative Investment Fund Managers Directive (AIFMD). ESMA has added two new Q&As on ESMA’s guidelines on performance fees in UCITS and certain types of alternative investment funds. The new Q&As provide clarification on the crystallisation of … Continue Reading

ESMA updates UCITS Q&As

On 30 March 2021, the European Securities and Markets Authority (ESMA) updated its Q&As on the application of the UCITS Directive. ESMA has added two new Q&As on ESMA’s guidelines on performance fees in UCITS and certain types of alternative investment funds. The Q&As provide clarification on the crystallisation of the performance fees and on … Continue Reading

BoE / FCA survey findings – liquidity management in UK open-ended funds

On 26 March 2021, the Bank of England and the FCA published the findings of their joint survey of liquidity management in UK-authorised open-ended funds. The joint survey was launched in August 2020, and covered a reporting period from Q4 2019 to Q2 2020, incorporating the extreme market conditions in March 2020 in the wake … Continue Reading
LexBlog