Tag: Collective investment schemes

ESMA follow-up report to the peer review on the guidelines on ETFs and other UCITS issues

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

ESMA final report on the 2022 CSA on valuation

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

ESMA calls for legislative amendments to prevent undue costs in funds

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

New Regulation Tomorrow podcast: Asset Management series – The role of depositaries

In the third in our series of Regulation Tomorrow podcasts focusing on the future of asset management regulation in the UK, Hannah Meakin, Taher Ahmed and Anita Edwards discuss the role of depositaries in the sector and the FCA’s proposals for reform, as set out in the recent FCA discussion paper, DP23/2. For more information … Continue Reading

IOSCO Good Practices Relating to the Implementation of the IOSCO Principles for Exchange Traded Funds

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

New Regulation Tomorrow podcast: Asset Management series – The role of host AFMs and appointed representatives

In the second in our series of Regulation Tomorrow podcasts focusing on the future of asset management regulation in the UK, Hannah Meakin, Taher Ahmed and Anita Edwards discuss potential reforms to regulatory hosting structures and appointed representatives, a topic discussed in the FCA’s recent discussion paper, DP23/2. For more information on DP23/2, see our … Continue Reading

HM Treasury consults on proposals for a Reserved Investor Fund

On 27 April 2023, HM Treasury published a consultation paper on its proposals for a new unauthorised contractual scheme, the Reserved Investor Fund. In its response to the UK funds regime review call for input on 10 February 2022, the government committed to undertaking further work to explore options for the introduction of a new … Continue Reading

New Regulation Tomorrow podcast: Asset Management series – Macro-themes from FCA discussion paper DP23/2

In the first in our new series of Regulation Tomorrow podcasts focusing on the future of asset management regulation in the UK, Hannah Meakin, Taher Ahmed and Anita Edwards discuss some of the macro-themes arising from the FCA’s recent discussion paper, DP23/2, on the future of the UK’s asset management regime. For more information on … Continue Reading

New briefing note: The future of asset management in the UK – FCA discussion paper DP23/2

The FCA’s discussion paper DP23/2, which is open for comment until 22 May 2023, sets out a range of proposals to reform the UK regulatory regime for asset managers and funds. The DP follows the government’s conclusion in December 2022 of its Future Regulatory Framework review and is intended to help the FCA decide how … Continue Reading

Regulation (EU) 2023/606 as regards the requirements of pertaining to the investment policies and operating conditions of ELTIFs and the scope of eligible investment assets, the portfolio composition and diversification requirements and the borrowing of cash and other fund rules

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

FCA seeks views on updating and improving the UK regime for asset management

On 20 February 2023, the FCA published Discussion Paper 23/2 ‘Updating and improving the UK regime for asset management’ (DP23/2). Under the Future Regulatory Framework, the government has proposed making the FCA responsible for those retained EU laws that set requirements for firms. This means the FCA will need to decide whether its rules should … Continue Reading

ESMA updates Q&As on the application of the UCITS Directive

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

ESMA consults on the review of the methodology on stress test scenarios for MMFs

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

ESMA guidelines on stress test scenarios under the MMF Regulation

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

ESRB announces adverse scenario for ESMA’s money market fund stress testing guidelines in 2022

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

ESMA publishes final report on guidelines on stress test scenarios under the MMF regulation

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

Council of the EU announces provisional agreement reached on European long term investment funds

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

UK Funds Outlook

Introduction Irrespective of one’s view on whether the FX and Gilts markets’ reaction to the UK mini-budget announced on September 23 2022 was proportionate to the threat posed to the UK’s fiscal position and Sterling, the crisis of confidence and volatility triggered by the mini-budget has served to focus attention on the UK’s particular set … Continue Reading

ECB 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

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

FCA consults on broadening retail access to the long-term asset fund

On 1 August 2022, the FCA published Consultation Paper 22/14 ‘Broadening retail access to the long-term asset fund’ (CP22/14). In CP22/14 the FCA sets out proposals for broadening the retail distribution of long-term asset funds (LTAFs) to more categories of retail investors, whilst including further investor protections. The FCA is proposing to treat a LTAF … Continue Reading

European Parliament report on the proposal for a Regulation amending the ELTIF Regulation

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

Presidency final compromise text – Directive amending the AIFMD 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

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

MEPs want to revive European long-term investment funds

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
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