Financial Services Regulation and Compliance - Funds Aug 2020

DOMESTIC

CBI publishes guidance on reporting obligations for fund management companies of Irish Authorised Money Market Investment Funds

The CBI has published guidance on Money Market Fund Regulation (MMFR) reporting for Authorised Money Market Investment Funds (MMF). The purpose of the guidance is to provide information and direction on the completion of MMF reporting by fund managers.

EU & INTERNATIONAL

Risk parameters in ESMA’s guidelines on stress test scenarios under the Money Markets Fund Regulation to be updated

ESMA confirmed on 27 August 2020 that the guidelines on stress test scenarios under the Money Market Funds Regulation will be updated in 2020. The updates reflect COVID-19 related market developments which has resulted in modification of the risk parameters. The updated guidelines are expected to be finalised in Q4 2020, following which they will be translated into all official languages, and will apply two months later (the 2019 guidelines will continue to apply until then).

ESMA recommends priority topics in AIFMD review

ESMA has written to the European Commission outlining areas for assessment during the European Commission's review of the Alternative Investment Fund Managers Directive (AIFMD). ESMA and national competent authorities have identified areas that could be improved in the legislation to enhance the supervision of alternative fund managers in Europe.

ESMA highlights opportunities for greater harmonisation and increasing the scope of permissible business activities as well as updating the AIFMD reporting regime as key areas for discussion under the review. Policy enhancements are proposed in Annex I to the letter and reporting recommendations are made in Annex II. Many of the recommendations made also require consideration of changes to the UCITS legislative framework.

For more information on these topics please contact any member of A&L Goodbody's Financial Regulation team.

Date published: 4 September 2020