Financial Services Regulation and Compliance - Funds May 2021

DOMESTIC

31 December 2021 deadline for UCITS Liquidity Risk Management review.

The CBI wrote to all Irish authorised UCITS managers about liquidity risk management. All Irish authorised UCITS managers (mancos, which include self - managed UCITS) are required to conduct a specific review of their practices, documentation, systems and controls. This review has to be completed and an action plan discussed and approved by the board of each manco by the end of Q4 2021. 

Speech by Derville Rowland, CBI Director General (Financial Conduct) at the Irish Funds conference 2021

On 19 May 2021 Derville Rowland, CBI Director General, Financial Conduct gave a speech at the Irish Funds Annual Global Funds Conference and gave a summary of the economic challenges that the pandemic has caused and the areas that the funds sector needs to improve on. Ms Rowland emphasised the following:

  • The funds sector "must remain resilient, fair and sustainably serve the needs of the economy."
  • The funds sector contributed to amplifying the stress caused by the pandemic instead of absorbing the shocks that it caused. It was also noted that the pandemic showed the need to develop and operationalise a macroprudential framework for investment funds.
  • Good governance, oversight and risk management rely on diversity at senior management and board level.
  • The new sustainability regulations will discourage greenwashing and protect consumers.
  • October 2022 is the expected application date for sustainability-related amendments to the UCITS Directive and AIFMD.

CBI Director General (Financial Conduct), Derville Rowland, will chair ESMA's Investment Management Standing Committee

ESMA's Board of Supervisors appointed Derville Rowland, CBI Director General (Financial Conduct), as the new chair of its Investment Management Standing Committee. Ms Rowland will begin her two-year term on 1 July 2021.

EUROPEAN

ESMA Guidelines on marketing communications under the Regulation on cross-border distribution of funds

ESMA published the final report on its guidelines under the Regulation on cross-border distribution of funds. The guidelines specify the requirements that funds’ marketing communications must meet. They will be translated into the official languages of the EU and published on ESMA’s website, which will trigger a two-month period during which national competent authorities must notify ESMA whether they comply or intend to comply with the guidelines. The guidelines will apply six months after the publication of the translations.

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

Date published: 4 June 2021