Tracker, Financial Services Regulation & Compliance - Funds

DOMESTIC

Central Bank Christmas Deadlines

The Central Bank of Ireland (Central Bank) has issued details of its deadlines for receipt of applications: for approval of fund and sub-fund applications that have pre-Christmas or pre year-end approval deadlines (this includes self-managed/internally managed investment company/ICAV applications and risk management processes); and for approval of post-authorisation amendments that have pre-Christmas or pre year-end approval or noting deadlines.

Irish Funds MiFID II Q&A

Irish Funds published a Q&A document on MiFID II which addresses implications for the Irish funds industry. The Q&A covers questions on product governance, inducements, payments for research and disclosure of costs, general scoping issues and Investment Managers/Advisers of AIFs/UCITS. The Q&A also provides action points for UCITS Management Companies (“ManCos”) and AIFMs to think about. UCITS ManCos and AIFMs contract with service providers who provide MiFID investment services in respect of Irish UCITS and AIFs as part of a delegation model framework. Although MiFID II does not directly apply to UCIT ManCos and AIFMS which are not authorised to carry out MiFID investment services, they do contract with parties who are subject to MiFID II. Therefore, the Irish Funds MifID II Working Group felt it would be beneficial to prepare this Q&A to assist these entities with the implementation of MiFID II.

Central Bank Markets Update

The Central Bank published issue 7 of 2017 of its Markets Update which included the publication of responses to its Discussion Paper on ETFs and noted that the Central Bank will host a conference entitled “ETFs – Stability and Growth” on 29 November 2017 in the Convention Centre Dublin. Topics discussed will include those which were included in the Central Bank's Discussion Paper on the topic.

Economic Letter published on liquidity analysis of Bond and Money Market Funds.

An Economic Letter by Naoise Metadjer and Kitty Moloney highlights the importance of the definition of liquidity for the results of liquidity stress tests of Investment Funds and Money Market Funds. The paper present a prototype methodology for liquidity monitoring delineated on maturity, sector and credit ratings of securities held by a number of Irish-domiciled Money Market Fundss and Bond Funds.

EUROPEAN

EuVECA and EuSEF Regulations

The European Parliament announced that it adopted the proposed Regulation amending the European Venture Capital Funds Regulation (Regulation 345/2013) (EuVECA Regulation) and the European Social Entrepreneurship Funds Regulation (Regulation 346/2013) (EuSEF Regulation). The text adopted by the Parliament has not yet been published.

The European Commission is proposal to mend ESMA's governance structure

The European Commission is proposing a number of amendments to ESMA’s governance structure, powers and funding arrangements. These will, if adopted, impact on the supervisory and regulatory regime applicable to funds and their managers. The proposals include providing ESMA with a more direct impact on the authorisations of funds and their managers. The proposal also includes funding recommendations whereby funds and their managers will be expected to partially fund ESMA and the two other European Supervisory Authorities, namely the EBA and EIOPA.

European Securities and Markets Authority publishes compliance table for the Guidelines on sound remuneration policies under the UCITS Directive and the AIFMD Directive

With regards to the UCITS Directive, all member states are in compliance other than Hungary, Slovenia, Italy who intend to comply and Denmark which has an exempt threshold for minor severance payments. Of the EEA/EFTA states, Lichtenstein is in compliance and Norway and Iceland intend to comply. With regards to the AIFMD Directive, all member states are in compliance other than Hungary, Slovenia, Italy who intend to comply. Of the EEA/EFTA states, Lichtenstein is in compliance and Norway and Iceland intend to comply.The EEA States other than the Member States of the European Union are not currently required to notify their compliance with the ESMA Guidelines. This table is based on information provided from those EEA States on a voluntary basis.

For further information please contact a member of the Financial Regulation team.

Date published: 09 October 2017