Financial Services Regulation and Compliance - Funds June 2020
CBI Central Beneficial Ownership Register for ICAVs and Unit Trusts
The CBI set up a dedicated area on its website containing information on the Central Beneficial Ownership Register for Certain Financial Vehicles. This follows the coming into force of S.I. No. 233 of 2020.
COVID-19: CBI expectations for Fund Service Provider on-site visits
The CBI set out its expectations as regards due diligence arrangements and periodic on-site visits to outsourcing service providers and delegates in the context of COVID-19. This was published in the section of the CBI website which deals with the COVID-19 Prudential Regulatory Flexibility Measures.
EU & INTERNATIONAL
Undue costs - Pricing process for UCITS and AIFs
ESMA has proposed a series of measures to harmonise the approach of national regulators to the supervision of costs in UCITS and AIFs.
UCITS & AIFMD revisions- draft Sustainability Directive and Regulation
The European Commission published a draft delegated UCITS directive and draft delegated AIFM regulation on the sustainability risks and sustainability factors to be taken into account for UCITS and AIFMs. The drafts are open for consultation until 6 July 2020.
The European Commission issued a report on AIFMD to the European Parliament and Council on 10 June 2020. AIFMD requires the Commission, if appropriate, to propose amendments to AIFMD. The Commission is expected to issue a consultation on the AIFMD later this year.
ESG: The Taxonomy Regulation
The Taxonomy Regulation on the establishment of a framework to facilitate sustainable investment and amending the Disclosure Regulation enters into force on 12 July 2020. The Taxonomy Regulation introduces an EU-wide taxonomy of environmentally sustainable activities, as well as new disclosure requirements for certain financial services firms and large public interest entities.
ESMA's updated 2020 Annual Work Programme and publishes 2019 Annual Report
ESMA published a revised work programme for 2020 and its 2019 Annual Report. Annex I to the work programme sets out delays to ESMA's planned consultations due to COVID-19. Amongst other things, these relate to work on sustainable finance and investment management. In particular, the final report on draft RTS on ESG disclosure and Taxonomy will be delayed from Q4 2020 to Q1 2021 and the ESMA guidelines on leverage will be delayed from Q3 2020 to Q4 2020.
EMIR Refit | Update to trade reporting obligations
From 18 June 2020, the responsibility and liability for reporting the details of OTC derivatives transactions to which an AIF or UCITS is a counterparty will fall on the AIFM in respect of the relevant AIF, and the UCITS management company in respect of the relevant UCITS. Previously liability for the reporting obligations fell on the AIF and the UCITS.
Capital Markets Union proposals
The CMU High-Level Forum published its final report. The report sets out 17 interconnected areas of recommendations aimed at removing the biggest barriers in the EU’s capital markets. The European Commission plans to publish a new Capital Markets Union Action Plan in Q4 2020.
Money market fund reporting
ESMA published the official translations of its guidelines on reporting under Article 37 of the MMF regulation. NCAs to which these guidelines apply must notify ESMA whether they comply or intend to comply with the guidelines, within two months of the date of publication by ESMA of the guidelines in all EU official languages.
For more information on this topic please contact any member of A&L Goodbody's Financial Regulation team.
Date published: 8 July 2020