Financial Services Regulation and Compliance - Funds Apr 2022
3 June 2022 filing deadline for impacted in-situ PCF roles under the CBI's Fitness & Probity Regime
The CBI updated the list of Pre-Approval Controlled Functions under the Fitness & Probity Regime. Regulated Financial Service Providers, which include regulated funds, will need to assess the changes and meet the deadline for impacted in–situ roles by 3 June 2022.
CBI's Beneficial Ownership Register for Certain Financial Vehicles – information update
The CBI issued an update on the collection of beneficial owner PPS numbers. No further action is required by CFV in respect of this update at this time. The further resubmission of filings to the CBI's Beneficial Ownership Register of CFV to include PPS numbers will now take place in Q3 2022.
UCITS directive and AIFM regulation – sustainable finance revisions
The delegated UCITS directive and delegated AIFM regulation on the sustainability risks and sustainability factors to be taken into account for UCITS management companies and AIFMs are effective from 1 August 2022.
SFDR delegated regulation.
The European Commission adopted a Delegated Regulation outlining the technical standards to be used by financial market participants when disclosing sustainability-related information under SFDR. It is subject to scrutiny by the European Parliament and the Council. The requirements of the Delegated Regulation will apply from 1 January 2023.
Consultation on the functioning of the Money Market Fund Regulation
The EU Commission published a targeted consultation on the functioning of the Money Market Fund Regulation.
IOSCO Consultation on ETFs
IOSCO is consulting on good practices in the operation and trading of exchange traded funds and to supplement IOSCO’s 2013 Principles for the Regulation of Exchange Traded Funds.
Funds' liquidity stress testing
ESMA carried out a supervisory engagement which focused on liquidity risk in corporate debt and real estate funds, with the results showing that in scope real estate funds do not pose any substantial risk for financial stability.
ESMA is currently conducting a Common Supervisory Action on the valuation of less liquid assets in UCITS and open-ended AIFs.
ESMA report on the cost and performance of EU retail investment products finds that ESG UCITS outperformed non-ESG UCITS
ESMA published its fourth annual statistical report on the cost and performance of EU retail investment products. A new finding this year is that UCITS with an environmental, social and governance strategy (including equity, bond and mixed funds) outperformed their non-ESG peers, and were also overall cheaper.
Sanctions imposed in response to the crisis in the Ukraine
Since February, the EU imposed a number of sanctions in response to the crisis in the Ukraine. Given that the crisis is developing and sanctions are continuing to evolve, the CBI is publishing details of new restrictive measures/sanctions that are adopted in this regard, as well as any associated EU/UN guidance, on their dedicated webpage.