Financial Services Regulation and Compliance - Funds April 2023

Domestic

QIAIF exposure to digital assets

The CBI is increasing limits for indirect exposure to digital assets (also known as crypto assets), depending on the liquidity provided by the Qualifying Investor Alternative Investment Fund (QIAIF) and subject to certain conditions. The CBI is also removing the requirement for a pre-submission where a QIAIF is proposing to invest in digital assets.

CBI note on liability driven investment funds

The CBI issued an information note on liability driven investment funds (LDI funds), referencing a statement issued by the Bank of England's Financial Policy Committee. The CBI also references its letter in November 2022 to all LDI funds which set out the minimum safeguards required to maintain the operational and financial resilience of LDI funds.

Department of Finance review and consultation on the funds sector

The Department of Finance is to conduct a review of Ireland’s funds sector and produce a report. On 6 April 2023, the Minister for Finance published the terms of reference for the Department of Finance to conduct a review of Ireland’s funds sector and produce a report ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets’. The multi-disciplinary review team will be led by the Department of Finance, with support from state bodies, including Revenue and the CBI, and will conclude its work in summer 2024.

CBI ETF Survey 

The CBI commenced its themed review of ETFs by issuing the first of two surveys to industry regarding the operationalisation of ETFs, including authorised participants, market makers and ETF providers. A qualitative survey was issued initially with a quantitative survey to follow later in April.

European

SFDR

A third set of Q&As on the interpretation of the Sustainable Finance Disclosure Regulation have been published. The questions were submitted by the European Supervisory Authorities and answered by the European Commission. Amendments to the first and second Q&As on the interpretation of SFDR were also published. The ESAs issued an industry consultation paper containing proposals to amend PAIs and financial product disclosures contained in the SFDR RTS. The consultation closes on 4 July 2023. The ESAs also provided an editable version of the annex templates to the SFDR Regulation.

Taxonomy Regulation

The EC published two draft delegated acts relating to the EU Taxonomy Regulation. The draft delegated acts are open for feedback until 3 May 2023.

For more information on these topics please contact any member of A&L Goodbody's Asset Management & Investment Funds team.

Date published: 15 May 2023