Asset Management & Investment Funds: EU & International Developments: June 2019

ESMA updates AIFMD and UCITS Q&As on depositary functions

The European Securities and Markets Authority (ESMA) published updated questions and answers documents (Q&A) on the application of the Alternative Investment Fund Managers Directive (AIFMD) and the Undertakings for the Collective Investment in Transferable Securities (UCITS) Directive on 4 June 2019.

The Q&As relate to the following:

  • distinction between depositary functions and mere supporting tasks that are not subject to the delegation requirements set out in the AIFMD and UCITS Directive
  • delegation of safekeeping functions
  • performance of depositary functions where there are branches in other Member States
  • supervision of depositary functions in case of branches in other Member States
  • delegation of depositary functions to another legal entity within the same group.

ESMA consultation on SFTR reporting 

​On 27 May 2019, ESMA opened a public consultation on draft guidelines on how to report securities financing transactions (SFTs). These guidelines will complement the SFTR technical standards and ensure the consistent implementation of the new SFTR rules.

The guidelines include general principles that apply to SFT reporting, including how the reports should be constructed and where the reports should be sent. The guidelines aim to provide clarity and a harmonised implementation on the following topics: 

  • the number of reportable SFTs
  • the population of reporting fields for different types of SFTs
  • the approach used to link SFT collateral with SFT loans
  • the population of reporting fields for margin data
  • the population of reporting fields for reuse, reinvestment and funding sources data
  • the management by counterparties of feedback from TRs, namely in the case of:
    • ​​rejection of reported data
    • reconciliation breaks
  • the provision of access to data to authorities by TRs

This consultation paper seeks stakeholders’ views on the guidelines. ESMA expects to publish a final report on the Guidelines on Reporting under SFTR in Q4 2019.

ESMA newsletter

ESMA newsletter (fifth edition) issued on 7 June 2019. It contains a:

  • full list of May publications
  • reminder that the ESA's Consumer Protection Day will take place in Dublin on 28 June
  • a full list of speaking appearances by ESMA staff
  • public holidays - ESMA will be closed for a public holiday on Monday 10 June
  • ESMA consultations can be found on the ESMA consultations page 

AML / CTF

FATF

For the first time under the FATF’s new, open-ended mandate, representatives from the 205 members of the FATF Global Network, the IMF, UN, World Bank and others meeting for FATF Week in Orlando, Florida.

During six days of meetings, key issues include:

  • interpretive note and guidance on virtual assets
  • developments in the financing of ISIL, Al-Qaeda and Affiliates and countries’ disruption strategies, including prosecution of terrorist financing
  • mutual evaluations of Greece and Hong Kong, China
  • actions taken by Brazil and Iceland
  • progress by Iran and other countries that present a risk to the financial system
  • risk-based approach guidance for legal professionals, accountants and trust and company service providers
  • guidance to improve terrorist financing risk assessments
  • the FATF report to G20 leaders
  • consideration of Saudi Arabia’s membership to the FATF
  • strategic review of the FATF’s processes and funding
  • priorities of the upcoming Chinese Presidency of the FATF

For more information in relation to this topic please contact a member of the Asset Management & Investment Funds team.

Date published: 19 June 2019