Financial Services Regulation and Compliance - Funds Mar 2022

Domestic 

Irish Funds meeting with CBI on the implications of Russian sanctions

EU sanctions regulations, issued on 25 February 2022, introduce a prohibition on selling units in certain funds after 12 April 2022, to a broad section of Russian related investors, including many that are not named on sanction lists. Irish Funds met with CBI regarding the implications of Russian sanctions. The CBI also issued a letter to Fund Service Providers (including fund management companies fund administrators and depositaries), in relation to the ongoing Russian invasion into Ukraine. 

CBI developing a macro-prudential framework for funds and progressing the AIFMD review.

CBI Director General, Financial Conduct, Derville Rowland set out the CBI's 2022 financial regulation priorities which included the development of a macro-prudential framework for funds and progressing the AIFMD review.

CBI update of national provisions governing marketing requirements for AIFs

The CBI updated its webpage on national provisions governing marketing requirements for AIFs to include CBI requirements where an AIF situated in another jurisdiction proposes to market its units in Ireland to retail investors.

European 

Updated supervisory statement on the application of SFDR

The ESAs updated their joint supervisory statement on the application of the Sustainable Finance Disclosure Regulation and Taxonomy Regulation. This includes a new timeline and expectations about the explicit quantification of the product disclosures under Article 5 and 6 of the TR.

PRIIPS "Quick Fix" delegated regulation

The EU Commission adopted the PRIIPS Quick Fix delegated regulation. This will allow manufacturers of PRIIPs that offer investment funds to continue using UCITS KIIDs until 31 December 2022. The scrutiny period for Parliament and Council has been set at 3 months.

ESMA's recommendations to financial market participants in response to the war in Ukraine

ESMA issued a summary of its supervisory and coordination activity in response to the war in Ukraine, as well as recommendations to financial market participants on sanctions, market disclosure and financial reporting

ESMA analysis finds that actively managed funds did not on average outperform benchmarks during the market stress of end February - end June 2020

ESMA issued the outcome of a study analysing the performance of actively managed equity UCITS relative to their prospectus and market benchmark indices, between 19 February 2020 and the end of June 2020.

Sanctions imposed in response to the crisis in the Ukraine

Over the course of February and March, the EU imposed a number of sanctions in response to the crisis in the Ukraine. Given that the crisis is developing and sanctions are continuing to evolve, the CBI is publishing details of new restrictive measures/sanctions that are adopted in this regard, as well as any associated EU/UN guidance, on their dedicated webpage.

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

Date published: 14 April 2022