A new process for submitting the net asset values (NAV) for listed investment funds will be implemented by the Irish Stock Exchange (ISE) in September 2015. Currently NAVs are submitted by email to firstname.lastname@example.org or email@example.com. All funds listed on the Main Securities Market of the ISE must submit a NAV per class in accordance with the Code of Listing Requirements and Procedures for Investment Funds (the Code). The NAV must be submitted upon calculation in accordance with the listing rules. The new enhanced service will be operated securely, and on a timely basis, enabling efficient filing, real time intraday detail updates, straight through processing and publication to market. This will ensure fund issuers can continue to comply with their regulatory and transparency obligations under relevant EU securities legislation and ISE Listing Rules.
Connected Party Transactions
The IFIA published a Guidance Paper on Connected Party Transactions which was drafted in order to assist depositaries in discharging their regulatory obligations.
EU AND INTERNATIONAL DEVELOPMENTS
European Securities and Markets Authority (ESMA) calls for modification of UCITS Directive
ESMA has published an opinion on the impact of EMIR on the UCITS Directive. ESMA is calling for a modification of the UCITS Directive to take into account the clearing obligations for certain types of OTC financial derivative transactions under EMIR. In its opinion, ESMA has stated that the UCITS Directive should not distinguish between OTC financial derivative transactions and exchange-trade derivatives (ETDs); rather a distinction should be made between cleared and non-cleared OTC financial derivative transactions. ESMA believes that counterparty risk limits should be calibrated to different types of segregation arrangements taking various different elements into account. ESMA has stated that the UCITS Directive should not apply counterparty risk limits to clearing members but should apply some counterparty risk limits under "omnibus client segregation". ESMA also believes that the UCITS Directive's counterparty risk limits to EU CCPs and some non-EU CCPs recognised by ESMA should take into account the relatively low counterparty risk of these entities.
AIFMD: Delegated Regulation on information to be provided by National Competent Authorities to ESMA
On 27 March 2015, the Commission Delegated Regulation (EU) 2015/514 of 18 December 2014 on information to be provided by national competent authorities to the European Securities and Markets Authority (ESMA) under the AIFMD was published in the Official Journal of the EU. The Delegated Regulation applies to member states from 16 April 2015.
European Long-Term Investment Funds (ELTIFs)
On 20 April 2015, the Council of the EU announced that it adopted the Regulation on European Long-Term Investment Funds (the ELTIF Regulation). ELTIFs are vehicles designed to boost non-bank investment in the real economy across the EU. ELTIFs will facilitate professional and retail investors investing into companies and projects that need long-term capital. Long-term capital finances tangible assets (such as energy, transport, communication infrastructures, industrial and service facilities, housing and climate change technologies), as well as intangible assets (such as education and research and development). The ELTIF Regulation lays down uniform rules on the authorisation, investment policies, and operating conditions of EU AIFs that are marketed as ELTIFs. Only EU alternative investment funds (AIFs) that are managed by alternative investment fund managers (AIFMs), authorised in accordance with AIFMD, will be eligible to market themselves as ELTIFs. The ELTIF Regulation will enter into force 20 days after it is published in the OJ and is expected to apply six months after it has entered into force.