Financial Services Regulation and Compliance - Funds Nov 2020
DOMESTIC
CBI to provide a fast-track process for SFDR prospectus updates
The CBI advised Irish funds that it will put in place a fast-track process to deal with prospectus updates due to be filed under the EU Sustainable Finance Disclosure Regulation (SFDR) by 10 March 2021.
CBI consultation on share class features of closed-ended QIAIFs
The CBI opened a consultation (closing 22 December 2020) on proposed regulatory guidance relating the establishment of differentiated share classes in a closed-ended QIAIF.
CBI updates requirements applicable to the general partner of Irish Investment Limited Partnerships
The CBI updated its AIFMD Q&A with two new AIFMD Q&As (1134 and 1135) in respect of the requirements applicable to the general partner of an ILP.
EU & INTERNATIONAL
ESMA consultation on marketing communications under the Regulation on facilitating cross-border distribution of collective investment undertakings
ESMA opened a consultation (closing 8 February 2021) on marketing communications under the Regulation on facilitating cross-border distribution of collective investment undertakings. The purpose of the draft guidelines is to specify the requirements for marketing communications sent to investors in order to promote UCITS and AIFs, including EuSEFs, EuVECAs and ELTIFs.
ESMA guidelines on performance fees in UCITS and certain types of AIFs will apply from 5 January 2021
On 5 November 2020, ESMA published the official translations of its guidelines on performance fees in UCITS and certain types of AIFs. The guidelines apply to fund managers and national competent authorities (NCAs) from 5 January 2021.
ESMA reports on penalties and measures issued under UCITS Directive and AIFMD
ESMA published its third annual report on penalties and measures issued under the UCITS Directive in 2019, and its first annual report on penalties and measures issued under the AIFMD in 2018 and 2019.
ESMA's five priority areas for UCITS and AIFMD fund managers with significant exposures to corporate debt and real estate assets
ESMA published a report which identifies five priority areas for action to improve the preparedness of investment funds with significant exposures to corporate debt and real estate assets, for potential future adverse liquidity and valuation shocks. The report follows the recommendation of the European Systemic Risk Board.
Money Market Funds
The International Organisation of Securities Commissions (IOSCO) published two reports relating to money market funds, namely the Thematic Review on consistency in implementation of money market funds reforms and the Thematic Note on money market funds during the March-April episode. EFAMA published a report entitled 'European MMFs in the COVID-19 market turmoil: Evidence, experience and tentative considerations around eventual future reforms'.
For more information on these topics please contact any member of A&L Goodbody's Financial Regulation team.
Date published: 4 December 2020