As discussed in our previous blog, ESMA has written to the European Commission ahead of the EU executive’s review of the AIFMD regulation. Although ESMA has recommended a raft of potential changes, one area that appears to be garnering particular attention, is the issue of delegation and substance. Looking specifically at ESMA’s comments on delegation,…
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When the European Commission announced back in March 2018, a proposal to amend the Alternative Investment Fund Managers Directive (AIFMD), in order to provide for a uniform regime for “pre-marketing” of alternative investment funds (AIFs) across Europe, there were many commentators that declared that “AIFMD II had finally arrived”. Admittedly, one of the main concerns…
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Last week, ESMA published a letter to the Commission setting out 19 key areas where it believes AIFMD could be improved. Specifically, ESMA’s letter includes: Harmonising the AIFMD and UCITS regimes; Delegation and substance; Liquidity management tools; Leverage; and The harmonisation of supervision of cross-border entities. These key areas were provided in Annex I of…
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The U.S. Securities and Exchange Commission (SEC) recently proposed significant modifications to the mutual fund and exchange-traded fund disclosure framework. The proposed disclosure framework would feature concise and visually engaging shareholder reports that would highlight information that is particularly important for retail investors to assess and monitor their fund investments. The proposal would: Require streamlined…
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It is said the definition of insanity is repeating the same action over and over again and expecting a different outcome. Its been reported a number of US execs have been given cushy retention bonuses in response to their companies declaring bankruptcy. This just doesn’t sit right. Has executive compensation departed so far from…
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Last Friday (14th August) was the Q2 filing deadline for 13F reporting. But how many more filings will you have to make? Last month, the SEC announced proposed amendments to 13F Reporting, to update the reporting threshold for institutional investment managers, as well as a number of other ancillary changes. Below we detail some of…
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As news emerges of a possible vaccine from Russia the world holds its breath at the possibility of a potential global solution. Unsurprisingly there has been high levels of scepticism and speculation surrounding the viability and more importantly the safety of the vaccine. To say the country has a shady history in regards to…
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Although the regulatory responses to COVID-19 have begun to slow, the past month has still brought several important updates on Liquidity, PRIIPs, Money Market Funds, as well as a number of shareholder disclosure developments. This month’s regulatory round-up pulls together some of the interesting regulatory developments we have tracked throughout July. For a full list…
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Last week we took a brief look at the liquidity risk management regime in Hong Kong. This week, moving slightly southwest, and staying in the same continent, we review the liquidity risk requirements in Singapore. In 2018, the same year Hong Kong made amendments to its Fund Manager Code of Conduct, the Monetary Authority of…
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Although liquidity risk management practices vary in different jurisdictions, in most cases, asset managers are required to monitor the liquidity of the fund on a frequent basis. Whilst many aspects of the regulations are broadly similar, differences can be seen from what is considered “liquid”, and around methodology to liquidity buckets, stress testing and reporting…
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