Welcome to the Funds-Axis Regulation Round Up! The past month brought a number of important regulatory developments, most significantly on funds’ marketing communications and the extension of the PRIIPs exemption of UK UCITS funds. There were also notable update on topics such as AIFMD, UCITS, Liquidity and EU short selling reporting. Continue reading below to…
Details
In early 2020, the European Securities and Markets Authority (ESMA) launched a Common Supervisory Action (CSA) on UCITS liquidity risk management (LRM). The purpose of this exercise was to simultaneously conduct coordinated supervisory activities in 2020 and to assess whether UCITS managers comply with their liquidity management obligations.
Details
Welcome to the Funds-Axis Regulation Round Up! Our monthly update highlights the latest developments impacting the investment compliance industry. The past month brought developments on a range of topics, including: UCITS & AIFMD Fund Liquidity Major Shareholdings Short Selling PRIIPs KID Continue reading below to find out more about these and many other recent regulatory…
Details
Recent disciplinary action by the Securities and Futures Commission (SFC) is a timely reminder to managers of the need to ensure they have in place appropriate systems and procedures to ensure they meet the Hong Kong Short Selling Reporting obligations of the funds that they manage.
Details
With the end of the first quarter of the year, March brought with it a number of developments on a range of areas, including: UCITS & AIFMD, Money Market Fund Regulation, Liquidity Risk Management, Short Selling, ESG and ELTIF Regulation. See below this month’s regulatory round-up to read about these developments and many more we tracked throughout March.
Details
The European Securities and Markets Authority (ESMA) has launched a consultation on potential reforms of the EU Money Market Funds Regulation (MMFR). This follows the SEC’s request for comment seen last month, which similar to the ESMA consultation, reviews the stress experienced by MMFs during the March 2020 crisis and assesses and proposes potential reforms.
Details
ESMA has published the results of the 2020 Common Supervisory Action (CSA) on UCITS liquidity risk management (LRM). UCITS are characterised by the offer to investors of on-demand liquidity. Article 84(1) states that UCITS shall repurchase or redeem its units at the request of any unit-holder. If the assets held within the fund cannot be sold quickly to meet redemption requests, there could be severe issues in paying redeeming investors. This can be exacerbated in times of stress when investors may look to redeem en masse whilst the market for the assets is drying up.
Details
A reminder of the 17 Recommendations IOSCO has launched a Thematic Review on the implementation of Liquidity Risk Management Recommendations. The Thematic Review aims to assess the extent to which the Recommendations have been implemented through member regulatory frameworks. The Thematic Review report is expected for Autumn 2022. Alongside the Thematic Review, IOSCO and the…
Details
These are the voyages of the Starship Post Brexit Enterprise. Its five-year mission: to explore strange new financial opportunities. To seek out new investment and income. To boldly go where no fund manager has gone before! In a rare move for the financial world there has been a push back on liberalisation and deregulation. A…
Details
It’s been a busy couple of months for the Swedish Supervisory Authority (Finansinspektionen) – so far in 2021, they have issued fines totaling SEK 20,390,500 (USD 2,462,174) for shareholder disclosure failings. With fines ranging from SEK 11,000 to SEK 5,100,000, as displayed in the graph below, non-compliance with Swedish disclosure requirements can be a costly…
Details