Financial Services Regulation and Compliance - Funds Feb 2021

DOMESTIC

Differentiated share classes in a closed- ended QIAIF

The CBI issued guidance on the establishment of differentiated share classes in a closed-ended QIAIF.

CBI framework for the authorisation of depositaries of assets other than financial assets

CBI issued new Guidance for Depositaries of Assets other than Financial Assets (DAoFI). The DAoFI is provided for under Regulation 22(3) (b) of the AIFM Regulations 2013.

CBI common supervisory action on UCITS costs and fees

ESMA launched a Common Supervisory Action on costs and fees. As part of this, the CBI is issuing detailed questionnaires requesting both qualitative information and quantitative data from a significant proportion of Irish UCITS.

EU & INTERNATIONAL

PRIIPs KID

Amendments to the PRIIPs Regulation in the form of draft Regulatory Technical Standards look set to be in place from 1 January 2022 and a further review of the PRIIPs Regulation itself should be completed in the first half of 2022.

ESMA report on exposures of AIFs to commercial real estate markets in the EU

ESMA published data on exposures of AIFs to commercial real estate markets in the EU as of 31 December 2019.

ESMA sends letter to Commission on improvements for European Long Term Investment Funds Regulation

ESMA has responded to the European Commission's consultation on the review of the European Long Term Investment Funds (ELTIF) Regulation. The letter sets out the key areas of the ELTIF review which ESMA considers require amendments. The objective of the changes proposed by ESMA is to bring ELTIFs more in line with the needs of both retail and professional investors. ESMA considers that this would make it a more attractive investment vehicle for professional investors whilst also serving as a potential savings placement alternative for retail investors which would improve access to funding for SMEs and enable the ELTIF framework it achieve its aims of facilitating the recovery of the European economy and deepening the Capital Markets Union.

The changes proposed by ESMA include amendments to the following areas:

  • eligible assets and investments
  • authorisation process
  • portfolio composition and diversification
  • redemptions
  • prospectus and cost disclosure

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

Date published: 9 March 2021