Financial Services Regulation and Compliance Bulletin - Funds May 2019
DOMESTIC
Change to the list of jurisdictions from which investment companies can re-domicile to Ireland
Investment companies from the British Virgin Islands, Cayman Islands, Jersey, Bermuda and Guernsey can re- domicile to Ireland as ICAVs or investment companies.
CBI communication on EMIR Refit and 17 June 2019 calculation deadline for investment funds
The CBI contacted Irish investment funds on 30 May 2019 to remind them of EMIR and EMIR Refit requirements. The CBI advised investment funds to identify, by 17 June 2019, if they are subject to the clearing obligations for Financial Counterparties. It also set out the CBI and ESMA notification procedure for an investment fund which concludes it is required to adhere to the clearing obligation or which chooses not to conduct the threshold calculation.
Reflections on Brexit, insights on supervision and enhancing diversity - Michael Hodson, Director of Asset Management and Investment Banking
On 14 May 2019, at an event celebrating the 20th anniversary of the Euro, Michael Hodson, the Director of Asset Management and Investment Banking delivered some remarks on Brexit, supervision and policy and diversity. In relation to Brexit, he spoke about the 'flextension', the nature of the risks that remain and the use of secondments. In relation to supervision and policy developments, he discussed outsourcing, CP86, the Asset Segregation Regulations, CP119, the Benchmarks Regulation and the new prudential regime for investment firms. In relation to diversity, he spoke about gender diversity at both board and management level but also emphasized the need for firms to engage more proactively in promoting diversity and illustrated the more structured FCA approach in relation to this topic.
EUROPEAN
ESMA advice on ESG amendments to the UCITS Directive and AIFMD
ESMA issued a final report setting out proposed amendments to the AIFMD and the UCITS Directive for the integration of sustainability risks and factors relating to environmental, social and good governance considerations. ESMA will work with the EU Commission with a view to transforming the technical advice into formal delegated acts.
The second Shareholders' Rights Directive
The SRD II is due to be implemented into national law in Ireland by 10 June 2019. SRD II contains transparency provisions which are applicable specifically to AIFMs, UCITS ManCos and self-managed UCITS investment companies.
Evert van Walsum, Head of Investors and Issuers Department – key note speech at the Swedish Investment Fund Association's Annual Conference 2019
On 13 May 2019, ESMA published a speech, delivered by Evert van Walsum, Head of the Investors and Issuers Department, on ESMA's current priorities. Points of interest included that ESMA is working on common principles for performance fees. Also, ESMA is reviewing the PRIIPs Delegated Regulation and expects to consult publicly in Q3 of 2019. Proposals for changes to the PRIIPs Delegated Regulation should be sent to the Commission at the start of 2020.
EuSEFs and EuVECAs
Commission Delegated Regulation (EU) 2019/819 supplementing the European Social Entrepreneurship Funds (EuSEF) Regulation with regard to conflicts of interest, social impact measurement and information to investors comes into force on 11 June 2019 and applies from 11 December 2019.
Commission Delegated Regulation (EU) 2019/820 supplementing the European Venture Capital Funds (EuVECA) Regulation with regard to conflicts of interest comes into force on 11 June 2019 and applies from 11 December 2019.
For more infomration on this topic please contact any member of A&L Goodbody's Financial Regulation team.
Date published: 7 June 2019