United Kingdom

Topic: Collective investment schemes

Subscribe to Collective investment schemes RSS feed

ESMA clarifies external support within the meaning of Article 35 of the MMF Regulation

On 9 July 2020, the European Securities and Markets Authority (ESMA) issued a public statement on external support under Article 35 of the Money Market Funds Regulation (MMF Regulation). The statement has been issued by ESMA in light of financial markets authorities recent actions to mitigate the impact of COVID-19 on the EU’s financial markets, … Continue Reading

ESMA guidelines on the reporting to competent authorities under Article 37 of the MMF

On 22 June 2020, the European Securities and Markets Authority (ESMA) published the official translations of its guidelines on reporting to competent authorities under Article 37 of the Money Market Fund Regulation (MMFR). Member State national competent authorities (NCAs) to which the guidelines apply now have two months in which to notify ESMA whether they … Continue Reading

ESMA updates reporting instructions for MMF reporting

On 4 June 2020, the European Securities and Markets Authority (ESMA) issued updated reporting instructions for money market funds (MMF) reporting. Article 37 of the Money Market Fund Regulation (MMFR) and the related technical standards oblige the managers of MMFs to submit a detailed list of information to Member State national competent authorities (NCAs) who … Continue Reading

FMLC responds to HM Treasury consultation on overseas funds regime

On 11 March 2020, we blogged that HM Treasury had published a consultation paper setting out the Government’s proposal for a new process for allowing investment funds domiciled overseas to be sold to UK investors. The proposed ‘overseas funds regime’ will introduce two new regimes based on the principle of equivalence: one for retail investment … Continue Reading

New client briefing note – The Master-KVG: an attractive option post-AIFMD

In order to sell their expertise to German institutional and retail investors, non-German asset managers must find ways to operate in the German investment market. This has become much more difficult under the Alternative Investment Fund Managers Directive. An attractive option is to cooperate with a German Master-KVG. We have recently published a new client … Continue Reading

ESMA guidance on performance fees in UCITS and certain AIFs

On 3 April 2020, the European Securities and Markets Authority (ESMA) published final guidance on performance fees in investment funds – applicable to undertakings for the collective investment in transferable securities (UCITS) and certain types of alternative investment funds (AIFs). In respect of UCITS, the guidance applies primarily in relation to Article 14 of the … Continue Reading

ESMA consults on standardised information to facilitate cross-border funds distribution

On 31 March 2020, the European Securities and Markets Authority (ESMA) launched a consultation paper on the standard forms, templates, and procedures that Member State national competent authorities (NCAs) should use to publish information on their websites to facilitate cross-border distribution of funds. The consultation paper represents the first stage in the development of draft … Continue Reading

ESMA update on reporting under the MMF Regulation

On 31 March 2020, the European Securities and Markets Authority (ESMA) announced that it was delaying the first reports by money market funds managers under the Money Market Funds Regulation (MMF Regulation) until September 2020. The original date for submissions was April 2020. The amended XML schema and reporting instructions will be published shortly on … Continue Reading

ESMA consults on guidance to address leverage risk under the AIFMD

On 27 March 2020, the European Securities and Markets Authority (ESMA) issued a public consultation on draft guidelines to address leverage risks in the alternative investment fund sector. The consultation has been drafted in response to a recommendation by the European Systemic Risk Board for ESMA to produce guidance on Article 25 of the Alternative … Continue Reading

Open-ended funds investing in less liquid assets

On 19 March 2020, the FCA published a speech given by Edwin Schooling Latter (Director of Markets and Wholesale Policy, FCA) entitled Open-ended funds investing in less liquid assets. In his speech Mr Latter states that the FCA and the Bank of England (BoE) are continuing to work to evaluate the costs and benefits of … Continue Reading

HM Treasury consults on marketing and overseas funds regime

On 11 March 2020, HM Treasury published a consultation paper setting out the Government’s proposal for a new process for allowing investment funds domiciled overseas to be sold to UK investors, to replace the existing regime, which is not viable over the long-term. The proposed ‘overseas funds regime’ will introduce two new regimes based on … Continue Reading

FCA consults on new climate-related disclosure requirements for premium listed issuers

On 6 March 2020, the FCA published Consultation Paper 20/3: Proposals to enhance climate-related disclosures by listed issuers and clarification of existing disclosure obligations (CP20/3). In CP20/3 the FCA is proposing to introduce a new rule for commercial companies with a UK premium listing, requiring them to state whether they comply with the recommendations of … Continue Reading

ESMA guidelines on stress test scenarios under MMF Regulation

On 3 March 2020, the European Securities and Markets Authority (ESMA) issued the official translations of its guidelines on stress test scenarios under the Money Markets Fund Regulation.  Member State national competent authorities to which the guidelines apply have to notify ESMA whether they comply or intend to comply with the guidelines within two months … Continue Reading

ESMA launches a common supervisory action with NCAs on UCITS liquidity risk management

On 30 January 2020, the European Securities and Markets Authority (ESMA) announced that it is launching a Common Supervisory Action (CSA) with national competent authorities (NCAs) on the supervision of UCITS’ managers liquidity risk management across the European Union. The CSA will be carried out during 2020. To support this aim, NCAs have agreed to … Continue Reading

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
LexBlog