On 27 March 2024, the Financial Conduct Authority (FCA) updated its webpage on fund tokenisation to add information on the Technology Working Group’s phase 2 report, published on 26 March 2024. The FCA and HM Treasury are observers on the industry-led Group, which is considering the implementation of fund tokenisation in the UK. The FCA … Continue Reading
On 26 March 2024, the Technology Working Group – an industry group established by the Government to examine the impact of technology on the UK’s investment management sector – published its second report, entitled ‘Further Fund Tokenisation: Achieving Investment Fund 3.0 Through Collaboration’. The new report builds on the publication of the Group’s first report … Continue Reading
On 25 March 2024, the Financial Conduct Authority (FCA) published a new webpage on alternative investment fund manager (AIFM) hosting. The webpage provides information for AIFMs using the host model to manage alternative investment funds (AIFs), known as AIFM hosting. AIFMs can use the host model to employ staff on secondment from a third … Continue Reading
On 1 February 2024, a statutory instrument (SI) – the Financial Services Act 2021 (Overseas Funds Regime and Recognition of Parts of Schemes) (Amendment and Modification) Regulations 2024 –was published, along with an explanatory memorandum. A draft version of the SI was published on 31 January 2024. For more detail, see our blog covering the … Continue Reading
On 31 January 2024, a draft statutory instrument (SI) – the Financial Services Act 2021 (Overseas Funds Regime and Recognition of Parts of Schemes) (Amendment and Modification) Regulations 2024 – was published on legislation.gov.uk, along with a draft explanatory memorandum. The draft SI is intended to support the operationalisation of the Overseas Funds Regime (OFR), … Continue Reading
On 20 December 2023, the Financial Stability Board issued a report setting out revised policy recommendations to address structural vulnerabilities from asset management activities in relation to liquidity mismatch in open-ended funds. The revised policy recommendations supersede section2 of the FSB’s 2017 policy recommendations to address structural vulnerabilities from asset management activities. The revised recommendations … Continue Reading
On 19 December 2023, the European Securities and Markets Authority (ESMA) published a final report on draft regulatory technical standards (RTS) under the revised European long-term investment fund (ELTIF) Regulation. The final report takes into account comments received to an earlier ESMA consultation and in accordance with ESMA’s mandate under the revised ELTIF Regulation the … Continue Reading
On 6 December 2023, the FCA published consultation paper CP23/28: Updating the regime for Money Market Funds (MMFs). CP23/28 sets out proposals to enhance the resilience of MMFs based in the UK, addressing vulnerabilities identified in the 2020 ‘dash for cash’ and other times of market stress. The FCA wants there to be an effective … Continue Reading
On 6 December 2023, HM Treasury (HMT) published a near-final version of the draft statutory instrument (SI) – the Money Market Funds Regulations 2024 – to replace the Money Market Funds Regulation and create a new framework for money market funds (MMFs). It also published a policy note on the MMFs framework. The draft SI … Continue Reading
On 30 November 2023, the FCA published a statement on communications in relation to packaged retail and insurance-based investment products (PRIIPs) and undertakings for collective investment in transferable securities (UCITS). The statement relates to concerns raised about costs and charges disclosure in the PRIIPs Key Information Document, the UCITS Key Investor Information Document and MiFID … Continue Reading
On 27 November 2023, the European Securities and Markets Authority (ESMA) published a speech by Verena Ross, Chair at the EFAMA Investment Management Forum in Brussels. The speech is entitled: The role of asset management – channelling capital into financial markets preserving financial stability and sustainability aims. In her speech Ms Ross provides a stock … Continue Reading
On 23 November 2023, the UK Parliament published the Alternative Investment Fund Designation Bill, which has been introduced to Parliament. This is Private Member’s Bill, intended to amend the Alternative Investment Fund Managers Regulations 2013 (which implemented the Alternative Investment Fund Managers Directive in the UK) to remove listed investment companies from Alternative Investment Fund … Continue Reading
We have now updated our two guides on the Alternative Investment Fund Managers Directive (AIFMD), which has now been in force for some time. Both guides are now in their sixth iteration. The first guide considers whether the AIFMD marketing passport is working in practice and is a useful tool for managers as it illustrates … Continue Reading
On 31 October 2023, the FCA announced that it will be partnering with regulators across the world as part of the Monetary Authority of Singapore’s (MAS) Project Guardian, a collaborative initiative with the financial industry that explores fund and asset tokenisation use cases and decentralised finance. The FCA joins MAS, Singapore’s central bank, the Financial … Continue Reading
On 12 October 2023, the FCA published a speech delivered by its Chair, Ashley Alder, at the Investment Association’s Annual Dinner on 11 October. In the speech, Mr Alder provides an update on the FCA’s priorities for updating and improving the UK asset management regime in light of the responses it received to discussion paper … Continue Reading
On 19 September 2023, the FCA published a new webpage on landing slots for funds in the temporary marketing permissions regime (TMPR). The webpage explains that, in the coming months, the FCA will be contacting fund operators with respect to landing slots for exiting the TMPR. It also notes that the process of exiting the … Continue Reading
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 10 August 2023, the FCA published the findings from its review of processes Authorised Fund Managers (AFMs) use for assessments of value (AoVs) for the funds they operate. This is a follow-up to the feedback the FCA gave from its first review in July 2021. In 2017, the FCA published its Asset Management Market … 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 7 July 2023, the FCA published the detailed findings and good practice from its multi-firm review of liquidity management frameworks in asset managers. The FCA also noted that it had written to the sector in a companion Dear CEO letter. Background In November 2019, the FCA issued a letter to the Boards of Authorised … 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 29 June 2023, the FCA published Policy Statement 23/7: Broadening retail access to the long-term asset fund (PS23/7). PS23/7 sets out the FCA’s response to the feedback it received to its earlier consultation paper on broadening retail access to the long-term asset fund (LTAF) (CP22/14) and details the final rules and guidance that it … 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