Asset Management & Investment Funds: Irish Practice Developments - June 2020
CBI markets update
The Central Bank of Ireland (CBI) published issue 6 2020 of its markets update. It contains updates from CBI, the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO).
CBI updates include:
- Central Bank sets out expectations in relation to due diligence on-site visits by fund service providers to outsourcing service providers / delegates
- Digital Finance in Europe - Gerry Cross, Director of Financial Regulation, Policy and Risk
- Protecting Consumers, Investors and SMEs during Covid-19 - Director General Derville Rowland
- Central Bank of Ireland issues Market Abuse Regulation questionnaire to issuers
- EBA consultation on the new regulatory framework for investment firms
- Central Bank confirms application of statement made by ESMA as regards open access requests under Articles 35 and 36 of MiFIR
COVID-19: CBI expectations for Fund Service Provider on-site visits
The CBI set out its expectations as regards due diligence arrangements and periodic on-site visits to outsourcing service providers and delegates in the context of COVID-19. This was published in the section of the CBI website which deals with the COVID-19 Prudential Regulatory Flexibility Measures.
Fund Service Providers (FSPs) are reminded of the importance of maintaining strong ongoing oversight of any outsourcing / delegation arrangements. As part of their ongoing oversight, FSPs should take into account the location of the relevant service provider and ensure controls are in place to identify and address the material challenges facing such locations during the current COVID-19 crisis.
It remains a matter for the relevant FSP to ensure that they are satisfied with the due diligence arrangements in place pertaining to their delegates. Nevertheless, the Central Bank considers that whilst the relevant COVID-19 related travel restrictions are in place, due diligence monitoring may be carried out remotely using the technology available to, insofar as possible, achieve the same result.
FSPs should conduct a risk assessment to identify aspects of the outsourcing relationship where appropriate due diligence may be difficult or unfeasible to achieve remotely. Where a risk is identified following this assessment, firms should consider what other steps can be taken to mitigate the risk until an onsite review is completed having regard to the scale and materiality of the outsourced activity. Firms should also put a plan in place to carry out an on-site visit when appropriate taking into account travel and other legal restrictions.
DAC2 – CRS & FATCA
Revenue have confirmed that the deadline for the filing of DAC2 – CRS & FATCA returns in respect of the 2019 reporting period is now deferred until 30 September 2020.
Investment Firm Directive and Investment Firm Regulation
The Department of Finance published a public consultation paper (closing 6 July) in relation to the exercise of national discretions in the Investment Firm Directive (IFD) and the Investment Firm Regulation.
Read here for more detail on:
- The Investment Firm Directive and Regulation
- Key dates under investment firms directive (2019/2034) and investment firms regulation (2019/2033). A table of key dates for the implementation of the IFD/IFR and associated regulatory measures is available here.
Please speak with your usual contact on the Asset Management & investment Funds team if you are interested in responding to this consultation.
Date published: 29 June 2020