Regulatory Insights • Funds-Axis Limited

Are you complying with the cost related provisions of the UCITS framework?

Regulatory Insights, Regulatory ReportingBy Trevor Dempster 8 January 2021

Yesterday, ESMA announced that it will be launching a Common Supervisory Action (CSA) with national competent authorities (NCAs) on the supervision of costs and fees of UCITS across the European Union. The CSA aims to assess the compliance of supervised entities with the relevant cost-related provisions in the UCITS framework, and the obligation of not charging investors with undue costs.

During the CSA, national competent authorities will take into account the supervisory briefing on the supervision of costs published by ESMA in June 2020.

Are you ready for dual disclosures after the Brexit transition period?

Investment Compliance, Regulatory InsightsBy Trevor Dempster 16 December 2020

As we move closer and closer to a no-deal Brexit, the likelihood is, that come the end of the UK’s transition period for leaving the EU (1st January 2021), major shareholders will need to consider a number of new factors to ensure they are making the correct disclosure to the correct competent authority of the issuer.

Top 5 Foreign Investment Developments: November 2020

Investment Compliance, Regulatory InsightsBy Trevor Dempster 3 December 2020

Foreign investment and sensitive sectors regimes enable government across the world to scrutinise foreign shareholders investing in sectors considered sensitive in the particular jurisdiction. We have seen the number of regimes significantly increase and scrutiny intensify throughout 2020. November, however, appears to have been a bumper month in terms of foreign investment developments tracked by our Regulatory Research Team. Below we highlight the top 5 shareholder disclosure FI developments we tracked through November.

Asset Managers Need to Step Up Their Liquidity Efforts – ESMA’s Five Key Priorities

Regulatory Insights, Risk MonitoringBy Trevor Dempster 16 November 2020

Throughout the year regulators have focused on liquidity, and as this year draws to a close, that focus shows no signs of diminishing. “Asset managers need to step up their efforts to ensure the liquidity of their funds is adequately managed and that they are prepared for future shocks” – that was the closing remarks from Steven Maijoor’s Keynote Address at EFAMA’s Investment Management Forum which heavily focused on liquidity risk.

UK National Security and Investment Bill

Investment Compliance, Regulatory InsightsBy Trevor Dempster 13 November 2020

On 11th November 2020, the UK Government introduced the long-awaited National Security and Investment Bill in the House of Commons. The Bill provides the government with new powers to screen investments, and aims at tightening the rules governing foreign investment across Britain’s critical infrastructure and parts of its defence industries.

Overhaul of Global Shareholder Disclosure Rules – Part 1

Investment Compliance, Regulatory InsightsBy Trevor Dempster 6 November 2020

In July, the SEC announced proposed amendments to 13F Reporting, to update the reporting threshold for institutional investment managers, as well as a number of other ancillary changes. The major proposed amendment was the increasing of the reporting threshold from $100 million to $3.5 billion.

Regulatory Round-up: October 2020

Regulatory Insights, Regulatory Round-upsBy Trevor Dempster 2 November 2020

Despite the continuing focus on the rapidly rising COVID-19 infections rates in the US & Europe, the looming Lockdown 2.0, and the impending, potentially contentious race for the White House, October saw regulators press ahead with the launch of several significant fund regulatory developments.

SEC Adopts Modernized Regulatory Framework for Derivatives Use

Regulatory Insights, Risk MonitoringBy Trevor Dempster 30 October 2020

On Wednesday, the Securities and Exchange Commission (SEC) approved 3 to 2, the 458 page derivative use rules aimed at enhancing the regulatory framework for derivatives in the U.S. The Investment Company Act limits the ability of registered funds and business development companies to engage in transactions that involve potential future payment obligations, including obligations under derivatives such as forwards, futures, swaps and written options. The new rules, which apply to mutual funds, exchange-traded funds (ETFs), close-end funds, as well as business development companies, will permit funds to enter into these transactions if they comply with certain conditions outlined below, which are designed to increase investor protection.

AIFMD II Consultation

Investment Compliance, Regulatory InsightsBy Trevor Dempster 26 October 2020

On 22nd October 2020, the European Commission (EC) published the much anticipated consultation on the Alternative Investment Fund Managers Directive (AIFMD).

CP86 Thematic Review and Conclusions

Investment Compliance, Regulatory InsightsBy Trevor Dempster 23 October 2020

On 20th October 2020, the Central Bank of Ireland (CBI) published a letter to all UCITS management companies, authorised Alternative Investment Fund Managers (AIFMs), self-managed UCITS investment companies and internally managed Alternative Investment Funds which are authorised AIFMs. The letter sets out the CBI’s conclusions of its thematic inspection of compliance with its Fund Management Companies Guidance, which concluded the three-part CP86 consultation process.

Category Archives: Regulatory Insights

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