Financial Services Regulation and Compliance - Funds August 2023

Domestic

European Long-term Investment Funds (ELTIF) developments

The CBI is preparing a standalone ELTIF chapter for inclusion in the AIF Rulebook with a consultation expected in October.

Irish Funds guidance paper on depositary oversight principles and ESG investment

The Irish Funds Depositary Working Group produced a guidance paper recommending a set of principles that depositaries may consider in the discharge of their regulatory duties, as they relate to a fund’s ESG-related investment restrictions, investment policy and investment objective.

European

ESMA Common Supervisory Action (CSA) on sustainability and risk disclosure

ESMA launched a CSA with National Competent Authorities (NCAs) on sustainability-related disclosures and the integration of sustainability risks. As part of a data collection exercise under the CSA, the CBI issued a questionnaire to a selection of Irish Fund managers, covering a range of UCITS/AIFs within scope of Article 6, Article 8, and Article 9 SFDR.

European Sustainability Reporting Standards

On 31 July 2023, the European Commission adopted the first set of the European Sustainability Reporting Standards for use by all companies subject to the reporting requirements of the Corporate Sustainability Reporting Directive. Funds and fund managers are currently exempt from the sustainability reporting obligations set out in the Corporate Sustainability Reporting Directive (CSRD). CSRD is expected to increase the availability/quality of data available for fund managers to meet their SFDR disclosure requirements to the extent their funds under management invest in companies within scope of CSRD.

Financial Stability Board (FSB) thematic peer review on money market fund (MMF) reforms

The FSB requested feedback from stakeholders as part of its thematic peer review on MMFreforms by 8 September 2023. The review will assess progress made by FSB member jurisdictions in assessing and addressing MMF vulnerabilities in their domestic markets. We expect publication of the peer review by end 2023.

Interconnectedness among EU investment funds - ESMA working paper

ESMA published a working paper on interconnectedness among EU investment funds.

For more information on these topics please contact any member of A&L Goodbody's Asset Management & Investment Funds team.

Date published: 21 September 2023