Financial Services Regulation and Compliance - Funds March 2023

Domestic

CBI industry letter on costs and fees of UCITS and AIFs

The CBI issued an industry letter to management companies of Irish funds highlighting the main findings of its inspection of costs and fees charged to UCITS as part of the European Securities and Markets Authority's 2021 Common Supervisory Action. The CBI letter sets out its supervisory expectations and the actions that management companies of Irish funds should take to ensure compliance.

CBI expectations of RFSPs in 2023

The CBI's annual Securities Markets Risk Outlook Report provides regulated financial service providers, investors and market participants with insight into the key risks and areas of focus for markets supervision, which will inform supervisory engagements over the coming year. CBI Deputy Governors Derville Rowland and Sharon Donnery spoke to the CBI's 2023 regulatory and supervisory priorities, building on the priorities letter which the Deputy Governors issued to all regulated firms earlier this year.

CBI clarifications of UCITS PRIIPS KID filing requirements

CBI updated its guidance on PRIIPs Key Investor Document (PRIIPs KID) filing requirements for UCITS. The update clarifies requirements and process for UCITS seeking authorisation from 1 January 2023 and for UCITS authorised prior to January 2023. The CBI also published the 38th edition of its UCITS Q&A with amendments to three Q&As and two new Q&As (ID 1110 and 1111) on the topic.

CBI guidance on marketing requirement for UCITS and AIFs

The CBI published revised website guidance on national provisions governing marketing requirement for UCITS and AIFs.

Money Market Funds

The CBI issued a notice of intention to the application of the latest iteration of the ESMA guidelines on stress test scenarios under the Money Market Fund (MMF) Regulation. The CBI expects full compliance with the guidelines from 27 March 2023. 

European

ESMA speech - The macro-prudential supervision of investment funds

Verena Ross, Chair, ESMA spoke on the macro-prudential supervision of investment funds – from a global debate to a balanced European regulatory frameworks, highlighting, in particular, liquidity and leverage risks to financial stability. 

ELTIF reform

Regulation (EU) 2023/606 (ELTIF 2.0) will apply from 10 January 2024. It will amend Regulation (EU) 2015/760 (ELTIF 1.0) as regards the requirements for the investment policies and operating conditions of European Long-Term Investment Funds (ELTIFs) and the scope of eligible investment assets, the portfolio composition and diversification requirements and the borrowing of cash and other fund rules.

ESMA's Q&A on the application of the AIFMD

ESMA updated its Q&A on the application of the AIFMD with a new section XVI on the calculation of substantive direct or indirect holding for exemption purposes.

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

Date published: 13 April 2023