Financial Services Regulation and Compliance - Funds July 2020
DOMESTIC
CBI expects full compliance on liquidity stress testing in UCITS and AIFs from 30 September 2020.
The CBI published a notice of intention in relation to the application of the ESMA guidelines on liquidity stress testing in UCITS and AIFs. The CBI will consult on the incorporation of a requirement in the Central Bank UCITS Regulations and AIF Rulebook that UCITS Management Companies, AIFMs and depositaries adhere to the Guidelines. In the interim, the CBI expects full compliance with the guidelines from 30 September 2020. The CBI updated its AIFMD Q&A and its UCITS Q&A in relation to liquidity stress testing
Beneficial Ownership filings for ICAVs and unit trusts
New regulations on beneficial ownership filings for ICAVs and unit trusts came into effect on 25 June 2020. Existing ICAVs and Unit Trusts have a six month lead-in period to file their beneficial ownership information, ending on 25 December 2020. New (from 25 June) ICAVs and Unit Trusts will also have a six month lead in time to file
Companies' central register of beneficial ownership – reporting discrepancies
The Companies' central register of beneficial ownership updated its FAQs to include the requirements and means for a competent authority/ relevant person/ designated person to report discrepancies.
EU & INTERNATIONAL
Brexit
The European Commission published an updated notice to stakeholders: withdrawal of the UK and EU rules in the field of post-trade financial services. From 1 January 2021 the UK will be a third country as regards the implementation and application of EU law in the EU. To date, equivalence assessments have not deemed UK equivalent. Counterparties to derivatives and securities financing transactions and issuers of financial instruments with a UK CSD therefore need to assess the consequences of Brexit and act to ensure compliance with EMIR, MIFIR, SFTR, CSDR, SFD.
PRIIPs KID
The European Supervisory Authorities informed the European Commission of the outcome of their review of the KID for PRIIPs. The ESAs issued draft (unapproved) report with draft RTS.
ESMA issued the official translations of its Guidelines on liquidity stress testing in UCITS and AIFs.
ESMA issued the official translations of its Guidelines on liquidity stress testing in UCITS and AIFs. They become effective on 30 September 2020.
COVID-19: ESMA statement on external support under MMF Regulation
ESMA published a statement on external support under Article 35 of the Regulation on money market funds in the light of actions by financial markets authorities to mitigate the impact of the COVID-19 pandemic on financial markets. The statement seeks to clarify the potential interaction between the intermediation of credit institutions and the requirements of Article 35 on external support.
For more information on this topic please contact any member of A&L Goodbody's Financial Regulation team.
Date published: 6 August 2020