Deadlines
- 28 May 2024 - T+1 - New rules being implemented by the Securities & Exchange Commission in the US to shorten the standard settlement cycle for most broker-dealer transactions in US securities from T+2 to T+1 take effect, discussed here.
- 30 June 2024 - SFDR - Fund management companies which are obliged due to their size, or which have opted to report on the principal adverse impacts of investment decisions on sustainability factors under Article 4 of the SFDR must publish a full PAI statement (which for the first time must include historical comparisons against last year’s PAI report) on their website on or before 30 June 2024.
- 30 June 2024 - Asset valuation frameworks - Irish fund management companies are required to review asset valuation frameworks by end Q2 2024, in line with CBI letter to industry discussed here.
- 1 July 2024 - Financial sanctions - reporting obligations begin to apply to EU credit institutions and financial institutions in respect of all transfers of funds, outside of the EU of a cumulative amount over that semester exceeding €100,000, that they initiated, directly or indirectly, for EU legal persons, entities and bodies which are directly or indirectly owned more than 40% by: a legal person, entity or body established in Russia; a Russian national; or a natural person residing in Russia. Reporting is to the relevant competent authority (the CBI for Irish RFSPs) within two weeks of the end of each calendar semester (on a semi-annual basis and whether the transfer was made in one or several operations). See more under EU and International developments.
- 15 July 2024 - Cross-border notifications - the CBI is updating its template notification forms. New templates will come into effect from 15th July 2024 as discussed in our April bulletin.
The above list does not cover:
- tax, FATCA or CRS filings, director's compliance statement obligations, which apply to listed UCITS VCCs
- diversity reporting obligations, which may apply to listed AIF and UCITS VCCs
- ad hoc filings, such as regulatory reports, or filings of annual accounts (and related documents which include annual FDI returns) and semi-annual accounts or other similar returns (which deadlines vary to reflect the particular entity's year-end)
By way of example, the Companies (Accounting) Act 2017 obliges UCITS investment companies and AIF investment companies to file annual accounts with the CRO within eleven months of their financial year-end.
Central Bank of Ireland speeches
Speeches recently delivered by the Central Bank of Ireland (CBI) include the following.
CBI Deputy Governor Derville Rowland spoke at the Irish Funds Annual Global Funds Conference noting:
- The Letta report’s recommendation for a new type of single market under the banner of a Savings and Investment Union recognising the need to incentivise European savers to want to invest in Europe.
- The European Securities and Markets Authority (ESMA) statement on the Capital Markets Union including the recommendations around encouraging greater retail participation in capital markets. ESMA identified that “Member States should consider how domestic tax policy can better incentivise retail investors to participate in and benefit from capital markets.” The Department of Finance’s ongoing Funds Review presents an opportunity to address the disincentives which exist for Irish consumers accessing the wide array of investment products that are provided in the funds sector.
- The impact of the forthcoming European Parliament elections and the consequent formation of the new agenda for the next European Commission.
- The CBI’s recent conference on macroprudential policy for investment funds, discussed in more detail under EU and International developments.
CBI Director of Consumer Protection Colm Kincaid spoke on financial consumer protection and market conduct considerations of AI in finance. Director Kincaid enunciated the CBI’s supervisory approach where firms are considering using AI.
Money Market Funds
The CBI published a notice of intention in relation to the ESMA “Guidelines on stress test scenarios under the MMF Regulation”. The notice sets out that the CBI expects full compliance with the guidelines from 6 May 2024. The CBI will, in due course, consult on the incorporation of a provision in the CBI UCITS Regulations and AIF Rulebook that all managers of MMFs adhere to the guidelines.
CBI Markets Update
The CBI issued Issue 5 of 2024 of its Markets Update.
The CBI introduces macroprudential measures for Irish-authorised GBP-denominated LDI funds.
On 29 April 2024, the CBI announced the introduction of macroprudential measures for Irish-authorised GBP-denominated liability driven investment (LDI) funds. Building on the recent consultation paper - Macroprudential measures for GBP Liability Driven Investment funds - the measures require that GBP-denominated LDI funds authorised in Ireland maintain sufficient resilience to a minimum of 300 bps increase in UK yields.
This measure is being codified in coordination with the CSSF, with whom the CBI have undertaken an aligned consultation process. Both the CBI and the CSSF are introducing the yield buffer as an ‘other restriction’ under Article 25 of AIFMD. This development was discussed in our April bulletin.
The CBI publishes a notice of intention in relation to the application of the ESMA guidelines on stress test scenarios under the Money Market Fund (MMF) Regulation (discussed above).
For more information on these topics please contact any member of A&L Goodbody's Asset Management & Investment Funds team.
Date published: 28 May 2024
