Tag: Collective investment schemes

UK authorities look to strengthen resilience of MMFs

Introduction On 23 May 2022, the FCA, jointly with the Bank of England, published Discussion Paper 22/1 ‘Resilience of Money Market Funds’ (DP22/1). At the same time the FCA published Finalised Guidance 22/3 ‘Finalised Guidance (non-Handbook) on parts of the UK MMF Regulation’ (FG22/3). DP22/1 Money market funds (MMFs) are a type of open-ended investment … Continue Reading

European Parliament draft report on proposal for a directive amending the AIFMD and UCITS IV Directive as regards delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination by alternative investment funds

On 16 May 2022, the European Parliament published a draft report concerning the proposal for a directive amending the Alternative Investment Fund Managers Directive (AIFMD) and UCITS IV Directive as regards delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination by alternative investment funds. The draft report sets … Continue Reading

ESMA guidelines on stress test scenarios under the MMF Regulation

On 4 May 2022, the European Securities and Markets Authority (ESMA) published the official translations of its guidelines on stress test scenarios under the Regulation on money market funds (MMF Regulation). The guidelines apply in relation to Article 28 of the MMF Regulation and establish common reference parameters for the stress test scenarios to be … Continue Reading

Commission targeted consultation on MMFs

On 12 April 2022, the European Commission launched a targeted public consultation intended to evaluate the Regulation on money market funds (MMF Regulation). The objective of the consultation is to seek feedback on the functioning of the regulatory framework and to collect data, in particular economic data, on the use of MMFs. The deadline for … Continue Reading

IOSCO seeks feedback on market liquidity issues affecting corporate bond markets under stress and good practices concerning ETFs

On 6 April 2022, the International Organisation of Securities Commissions (IOSCO) published a report, Corporate bond markets – drivers of liquidity during COVID-19 induced market stresses. The report analyses the work of the IOSCO working group on corporate bond market liquidity, which was tasked with analysing the corporate bond market microstructure, resilience and liquidity provision … Continue Reading

ESMA and NCAs find room for improvement in funds’ liquidity stress testing

On 30 March 2022, the European Securities and Markets Authority (ESMA) announced that following a supervisory engagement with investment funds and Member State national competent authorities (NCAs) it had found some room for improvement in funds’ liquidity stress testing. This year the ESMA will facilitate further discussion among NCAs on the application of its liquidity … Continue Reading

ESMA speech on key priorities for the asset management industry in 2022

On 30 March 2022, the European Securities and Markets Authority (ESMA) published a speech given by Natasha Cazenave, Executive Director at the ICI Investment Management Conference. The speech is entitled Key priorities for the asset management industry in 2022: sustainable finance and systemic risk and focusses on: Developing a framework for the asset management industry … Continue Reading

ESRB publishes letters to the Council Working Party and the European Parliament on AIFMD

On 23 March 2022, the European Systematic Risk Board (ESRB) published a letter to the Council Working Party and the European Parliament on the Directive on Alternative Investment Fund Managers (AIFMD) Review. The European Commission’s proposal reflects most of the considerations presented by the ESRB; they particularly welcome the proposal to increase the availability of … Continue Reading

ECA special report on the single market for investment funds

On 21 February 2022, the European Court of Auditors (ECA) published a special report concerning its findings following an audit during the period 2016 to July 2021 which examined how the EU set up a single market for investment funds. The special report concludes that EU actions have enabled a single market for investment funds … Continue Reading

ESMA proposes reforms to improve resilience of MMFs

On 16 February 2022, the European Securities and Markets Authority (ESMA) issued a final report containing an opinion setting out proposed reforms to the regulatory framework for money market funds (MMFs).  The final report is the outcome of the work that ESMA conducted on the reforms of the EU MMF regulatory framework in light of … Continue Reading

ESMA final report on guidelines on stress test scenarios under the MMF Regulation

On 14 February 2022, the European Securities and Markets Authority (ESMA) issued a final report containing updated guidelines that apply in relation to Article 28 of the Regulation on money market funds and establish common reference parameters for the stress test scenarios to be included in the stress tests conducted by money market funds (MMFs) … Continue Reading

HM Treasury publishes the summary of responses to the call for input on the review of the UK funds regime

On 10 February 2022, HM Treasury published a summary of responses to the January 2021 call for input on the review of the UK funds regime and sets out next steps. The overarching objective of the review is to identify options which will make the UK a more attractive location to set up, manage and … Continue Reading

ESMA publishes translations for guidelines on performance fees in UCITS and certain types of AIFs

On 5 November 2020, the European Securities and Markets Authority (ESMA) issued the official translations of its guidelines on performance fees in UCITS and certain types of alternative investment funds (AIFs). Member State competent authorities have two months in which to notify ESMA whether they comply or intend to comply with the guidelines. Our earlier … Continue Reading

Hong Kong’s SFC steps in to halt ICO

An investigation by Hong Kong’s Securities and Futures Commission (SFC) has led to the halt and unwinding of an initial coin offering (ICO) by Black Cell Technology Limited (Black Cell) to the Hong Kong public on the basis that Black Cell potentially engaged in unauthorized promotional and unlicensed regulated activities. Black Cell promoted the token … Continue Reading

Asset management in South Africa – Ten things to know

1. Licensing of asset managers South African asset managers must register as financial service providers (FSPs) with the Financial Services Board (FSB) under the Financial Advisory and Intermediary Services Act (FAIS). Any person carrying on asset management business in South Africa, or from abroad directed at South African clients, whether in a discretionary or non-discretionary capacity … Continue Reading
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