Financial Services Regulation and Compliance - Funds May 2023
Domestic
CBI speech – Building Resilience in Markets
On 16 May 2023, Deputy Governor of the CBI, Vasileios Madouros, delivered a speech on Building Resilience in Markets in which he discussed developing a macroprudential lens in the regulation of non-banks, with a focus on the investment fund sector.
Minister for Finance Michael McGrath - speech at the Irish Funds annual dinner
On 8 May 2023, Minister for Finance, Michael McGrath, delivered a speech at the Irish Funds annual dinner. Minister McGrath announced that he had recently received Cabinet approval for a review of the funds sector. This review will seek to ensure that the funds sector framework is up-to-date and fit for purpose in the years ahead and that it continues to support national and regional economic growth, as well as job creation. A public consultation will be included.
CBI ETF survey
The CBI progressed its themed review of ETFs by issuing the second of two surveys to industry regarding the operationalisation of ETFs, including authorised participants, market makers and ETF providers.
European
EU retail investment package will update the UCITS Directive, the AIFMD and the PRIIPs Regulation
The European Commission's retail investment package has been issued. It proposes (among other things) updates to the UCITS Directive, the AIFMD and the PRIIPs Regulation, dealing, in particular with pricing and costs.
Undue costs: ESMA proposes revisions to the UCITS Directive and AIFMD
On 18 May 2023, ESMA published an opinion to the European Commission with suggested revisions to the legislative provisions of the UCITS Directive and the AIFMD to deal with ‘undue costs’. This opinion was published prior to the European Commission's retail investment package.
ESMA reports that improvements are needed in supervision of asset valuation
On 24 May 2023, ESMA published its report on the Common Supervisory Action with National Competent Authorities on the supervision of the asset valuation rules under the UCITS and AIFM Directives, concluding that improvements in supervision are needed.
IOSCO publishes good practices for the implementation of its principles for ETFs
On 15 May 2023, IOSCO published its ‘good practices’ relating to the implementation of the IOSCO principles for exchange traded funds (ETFs). These good practices relate to such areas as effective product structuring, disclosure, liquidity provision, and volatility control mechanisms.
ESAs issue consolidated Q&As on SFDR and PRIIPS KID
On 17 May, the ESAs published a consolidated Q&A on the SFDR and on the new PRIIPS Regulation and related delegated legislation. The consolidated Q&A combines responses given by the European Commission to questions requiring interpretation of Union Law, which are colour coded in blue, and responses generated by the ESAs relating to practical application or implementation, which are not colour coded. This consolidation does not include additional guidance.
ESMA Launches Consultation on ELTIFs
On 23 May 2023, ESMA launched a consultation on draft RTS under the revised ELTIF Regulation. The consultation will close on 24 August 2023.
For more information on these topics please contact any member of A&L Goodbody's Asset Management & Investment Funds team.
Date published: 15 June 2023