The Netherlands

Topic: Collective investment schemes

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ESMA launches a common supervisory action with NCAs on the supervision of costs and fees of UCITS

On 6 January 2021, the European Securities and Markets Authority (ESMA) announced that it was launching a Common Supervisory Action (CSA) with Member State national competent authorities (NCAs) on the supervision of costs and fees of UCITS across the EU. The CSA will be conducted during 2021. The CSA will assess entities’ compliance with the … Continue Reading

ESMA publishes final guidance to address leverage risk in the AIF sector

On 17 December 2020, the European Securities and Markets Authority (ESMA) published a final report containing guidelines on Article 25 of the Alternative Investment Fund Managers Directive (AIFMD). The objective of the guidelines is to establish consistent, efficient and effective supervisory practices within the European System of Financial Supervision (ESFS) and to ensure the common, … Continue Reading

ESMA updates guidelines on stress tests for money market funds

On 16 December 2020, the European Securities and Markets Authority (ESMA) published a report containing the 2020 update of the guidelines on money market fund (MMF) stress tests. The update takes account of MMFs recent experience during March 2020, particularly in relation to redemption scenarios. The report includes: Unchanged principle-based guidelines on stress testing the … Continue Reading

ESMA updates reporting under the MMF Regulation

On 4 December 2020, the European Securities and Markets Authority (ESMA) updated its validation rules regarding the Money Market Fund Regulation (MMFR). The proposed changes are not related to the published XML schemas. The changes only provide clarifications on existing validation rules in order to fix inconsistencies or ease the understanding of the rules. It … Continue Reading

IOSCO final report – thematic review on consistency in implementation of money market funds reforms

On 20 November 2020, the International Organisation of Securities Commissions (IOSCO) published a diagnostic report analysing the events that occurred in the money market funds (MMFs) sector during the market turmoil in March 2020. At the same time, IOSCO has also published a thematic review assessing the implementation of selected IOSCO recommendations issued in 2012 … Continue Reading

ESMA speech – future challenges for fund managers

On 19 November 2020, the European Securities and Markets Authority (ESMA) published a speech on future challenges for fund managers. During the course of this speech ESMA’s Executive Director, Verena Ross, provides some thoughts on the outlook for the asset management sector from a supervisory perspective. In particular, the Alternative Investment Fund Managers Directive (AIFMD) … Continue Reading

ESMA report to ESRB on liquidity risk in investment funds

On 12 November 2020, the European Securities and Markets Authority (ESMA) issued a report, Recommendation of the European Systemic Risk Board (ESRB) on liquidity risk in investment funds. The report follows an ESRB recommendation that was published on 6 May 2020 that asked ESMA to: coordinate with Member State competent authorities to undertake a focused … Continue Reading

ESMA publishes first report on use of sanctions under the AIFMD

On 12 November 2020, the European Securities and Markets Authority published its first annual report on the use by Member State competent authorities (NCAs) of sanctions under the Alternative Investment Fund Managers Directive (AIFMD). ESMA has prepared the annual report in accordance with Article 48(3) of the AIFMD. According to this article ESMA is to … Continue Reading

ESMA publishes third annual report on use of sanctions for UCITS

On 12 November 2020, the European Securities and Markets Authority published its 2019 annual report on the use by Member State competent authorities (NCAs) of sanctions under the UCITS IV Directive. This latest annual report is prepared in accordance with Article 99e(1) of the UCITS IV Directive. According to this article, NCAs shall provide ESMA … Continue Reading

ESMA consults on guidelines on marketing communications under the Regulation on cross-border distribution of funds

On 9 November 2020, the European Securities and Markets Authority (ESMA) issued a consultation paper concerning guidelines on marketing communications under Regulation 2019/1156 on facilitating cross-border distribution of collective investment undertakings (the Regulation). Article 4(6) of the Regulation requires ESMA to issue guidelines by 2 August 2021, and thereafter update those guidelines periodically, on the … 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

European Commission consults on AIFMD review

On 22 October 2020, the European Commission launched a public consultation on the review of the Alternative Investment Fund Managers Directive (AIFMD). The public consultation follows the European Commission’s review report sent to the European Parliament and the Council on 10 June 2020. The review report concluded that, while the AIFMD has contributed to the … Continue Reading

Commission consultation on ELTIFs

On 19 October 2020, the European Commission launched a public consultation on EU rules for long-term investment funds. European long-term investment funds (ELTIFs) is an EU scheme to facilitate investment – through alternative investment funds – in longer-term assets such as transport and social infrastructure projects (energy, hospitals, social housing), property and small firms. The … Continue Reading

ESMA announces update to reporting under the Money Market Funds Regulation

On 2 October 2020, the European Securities and Markets Authority announced it was updating the validations of the technical instructions for reporting under the Money Market Funds Regulation (MMF Regulation). ESMA states that the changes being made are not related to the published XML schemas, rather they add new warning type validations or provide clarifications … Continue Reading

Commission impact assessment – long-term investment funds – review of EU rules

On 16 September 2020, the European Commission issued an inception impact assessment concerning proposed amendments to the Regulation on European long-term investment funds (ELTIFs). The impact assessment notes that the current challenge with the ELTIF regime is that, to date, the initial take-up of ELTIFs by the market has been slow, with only a limited … Continue Reading

AFM starts follow-up investigation into transaction monitoring

On 26 August 2020, the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) announced that it started a follow-up investigation into the monitoring of transactions and the reporting of unusual transactions by investment firms and investment funds. An earlier investigation from 2019 showed deficiencies in these areas. In 2019, the AFM investigated … Continue Reading

ESMA guidelines on disclosure requirements under the Prospectus Regulation

On 15 July 2020, the European Securities and Markets Authority (ESMA) issued a final report containing guidelines on disclosure requirements under the Prospectus Regulation. The guidelines provide guidance to financial market participants regarding the disclosure of financial and non-financial information in a prospectus. The purpose of the guidelines is to ensure that market participants have … Continue Reading

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

AFM publishes sustainability guidelines for investment firms and fund managers

On 6 July 2020, the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) published a sector letter containing guidelines on sustainability in the context of new rules and regulations. Many new laws and regulations are currently being introduced in the field of sustainability. For example, as of 10 March 2021, the EU … Continue Reading

AFM publishes recommendations for the review of AIFMD

On 17 June 2020, the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) published its recommendations for the review of the Alternative Investment Fund Managers Directive (AIFMD) in the form of a position paper: “Views on the review of the Alternative Investment Fund Directive (AIFMD)”. This follows on the European Commission’s AIFMD … 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

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

Legislative letter AFM for 2020 published

The Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) recently submitted its legislative letter (wetgevingsbrief) for 2020 to the Dutch Minister of Finance (the Minister). This letter is submitted to the Minister annually and sets out the relevant European and national developments relevant to the financial sector and the legislative changes desired … Continue Reading

AFM calls on investment funds and investment firms to improve transaction monitoring

On 14 April 2020, the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) announced that investment funds and investment firms are still not doing enough to combat money laundering and terrorist financing. Under the Act on the prevention of money laundering and terrorist financing (Wet ter voorkoming van witwassen en financieren van … Continue Reading
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