Regulatory Round-up: March 2021

Regulatory Round-up: March 2021

With the end of the first quarter of the year, March brought with it a number of developments on a range of areas, including: UCITS & AIFMD, Money Market Fund Regulation, Liquidity Risk Management, Short Selling, ESG and ELTIF Regulation. See below this month’s regulatory round-up to read about these developments and many more we tracked throughout March.

SEC Adopts Modernized Regulatory Framework for Derivatives Use

SEC Adopts Modernized Regulatory Framework for Derivatives Use

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.

SEC Proposed Modernised Shareholder Reports

SEC Proposed Modernised Shareholder Reports

The U.S. Securities and Exchange Commission (SEC) recently proposed significant modifications to the mutual fund and exchange-traded fund disclosure framework. The proposed disclosure framework would feature concise and visually engaging shareholder reports that would highlight information that is particularly important for retail investors to assess and monitor their fund investments.