On 16 August 2023, the Financial Stability Board (FSB) published summary terms of reference for a thematic peer review on money market fund (MMF) reforms. The peer review will take stock of the measures adopted by FSB member jurisdictions to enhance MMF resilience in response to the FSB’s 2021 policy proposals. The FSB has also … Continue Reading
On 20 July 2023, the European Commission issued a press release welcoming the political agreement that the European Parliament and Council had reached on the legislative proposals that were adopted as part of the Capital Markets Union package which amend the UCITS Directive and the Alternative Investment Fund Managers Directive. The agreement reached is provisional … Continue Reading
On 20 July 2023, the European Commission published a report to the European Parliament and the Council on money market funds (MMFs) from a prudential and economic point of view. The report delivers on the legal mandate under Article 46(1) and 46(2) of the MMF Regulation for the Commission to submit a report to the … Continue Reading
On 6 July 2023, the European Banking Authority (EBA) published final draft regulatory technical standards (RTS) on initial margin model validation (IMMV) under Article 11(15)(aa) of the European Market Infrastructure Regulation (EMIR). In order to enhance compliance with the margin framework for non-cleared over-the-counter derivatives laid down by the Basel Committee on Banking Supervision (BCBS) … Continue Reading
On 5 July 2023, the International Organisation of Securities Commissions (IOSCO) published a consultation report on guidance for effective implementation of the recommendations for liquidity risk management for collective investment schemes. The report provides detailed guidance to support greater and more consistent use of anti-dilution liquidity management tools by responsible entities for open-ended funds (OEFs), … Continue Reading
On 3 July 2023, the European Securities and Markets Authority (ESMA) published a report on marketing requirements and marketing communications under the Regulation on cross-border distribution of funds (the Regulation). This is the second report, produced by ESMA, which covers Member States’ national rules governing the marketing of investment funds under the Regulation. ESMA submitted … Continue Reading
On 16 June 2023, the European Commission (the Commission) published a letter from John Berrigan, Deputy Director-General for Financial Stability, Financial Services and Capital Markets Union, addressed to Verena Ross, ESMA Chair, formally requesting technical advice on the review of Commission Directive 2007/16/EC on UCITS eligible assets (commonly known as the Eligible Assets Directive). The … Continue Reading
On 14 June 2023, the European Securities and Markets Authority published the following updated Questions and Answers (Q&As): Q&As on the application of the AIFMD – The Q&As have been updated to include new sections on: Q&As on the application of the UCITS Directive – The Q&As have been updated to include the following questions:… Continue Reading
On 6 June 2023, the European Securities and Markets Authority (ESMA) issued a follow-up peer review report which provides an update on the action that Member State competent authorities (NCAs) have taken to address the issues that were identified in the 2018 peer review on the guidelines on exchange traded funds and other UCITS issues. … Continue Reading
On 24 May 2023, the European Securities and Markets Authority (ESMA) published a final report on the 2022 Common Supervisory Action (CSA) on valuation. Introduction In January 2022, ESMA launched a CSA with Member State national competent authorities (NCAs) on the supervision of the asset valuation rules under the UCITS Directive and Alternative Investment Fund … Continue Reading
On 17 May 2023, the European Securities and Markets Authority (ESMA) published an Opinion to the European Commission with suggested clarifications of the legislative provisions under the UCITS Directive and the Alternative Investment Fund Managers Directive relating to the notion of “undue costs”. The Opinion follows a Common Supervisory Action on the supervision of costs … Continue Reading
On 12 May 2023, the International Organization of Securities Commissions (IOSCO) published Good Practices Relating to the Implementation of the IOSCO Principles for Exchange Traded Funds. Exchange traded funds (ETFs) are an increasingly popular investment vehicle, which offer investors exposure to underlying markets for stocks, bonds and other assets; portfolio diversification; and access to a … Continue Reading
On 20 March 2023, there was published in the Official Journal of the European Union (OJ) Regulation (EU) 2023/606 of the European Parliament and of the Council of 15 March 2023 amending Regulation (EU) 2015/760 as regards the requirements of pertaining to the investment policies and operating conditions of European long-term investment funds and the … Continue Reading
On 3 February 2023, the European Securities and Markets Authority (ESMA) updated its Questions and Answers (Q&As) on the application of the UCITS Directive. The Q&As have been updated to include a new Q&A in Question 5: Issuer concentration. The new Q&A is as follows: Question: Article 52(1)(b) of the UCITS Directive requires a UCITS … Continue Reading
On 31 January 2023, the European Securities and Markets Authority (ESMA) issued a consultation on the review of the methodology included in the guidelines on stress test scenarios under the Money Market Fund Regulation. The proposed changes concern amendments to the liquidity scenario which is intended to take into account the interaction between liquidity and … Continue Reading
On 27 January 2023, the European Securities and Markets Authority (ESMA) issued guidelines that apply in relation to Article 28 of the Money Market Funds Regulation and establish common reference parameters for the stress test scenarios to be included in the stress tests conducted by money market funds (MMFs) or managers of MMFs in accordance … Continue Reading
On 30 November 2022, the European Systemic Risk Board (ESRB) announced the adverse scenario for the European Securities and Markets Authority’s (ESMA) money market fund (MMF) stress testing guidelines in 2022. ESMA, in cooperation with the ESRB are required by legislation to conduct stress tests to assess the resilience of financial institutions or market participants … Continue Reading
On 30 November 2022, the European Securities and Markets Authority (ESMA)published a final report on guidelines on stress test scenarios under the Money Market Funds Regulation (MMF Regulation). Article 28 of the MMF Regulation provides that ESMA shall develop guidelines with a view to establishing common reference parameters of the stress test scenarios to be … Continue Reading
On 19 October 2022, the Council of the EU announced that provisional agreement had been reached on the review of the regulation on European long-term investment funds (ELTIF) in order to make these investment funds more attractive. In their alignment, the co-legislators intend to overcome a number of supply-side and demand-side limitations. They clarified in … Continue Reading
On 9 August 2022, the European Central Bank (ECB) published an opinion on a proposal for a directive as regards delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination by alternative investment funds. The proposal forms part of a package of legal acts in support of the Capital … Continue Reading
On 1 July 2022, the European Parliament published a report on the proposed Regulation amending the European Long Term Investment Funds Regulation as regards 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, investment policies … Continue Reading
On 21 June 2022, the Council of the European Union published the Presidency’s final compromise text for the draft Directive amending the Alternative Investment Funds Managers Directive and the UCITS Directive as regards delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination by alternative investment funds.… Continue Reading
On 20 June 2022, the European Parliament issued an announcement stating that its Economic and Monetary Committee had adopted new rules for long-term investment funds. Lead MEP, Michiel Hoogeveen has said on the matter, ‘While the legislative framework for European long-term investment funds (ELTIFs) was adopted in 2015, so far their market remains small…The Parliament … Continue Reading
