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.
Liquidity risk was amplified by the COVID-19 pandemic with regulators introducing a number of initiatives to mitigate the corresponding risk. However, it’s not the only area which has seen increased attention as a result of COVID-19. As summarised below, despite the G20 commitment to “support global trade and investment” during the pandemic, foreign investment restrictions have been on the rise.
With the recent market volatility caused by the COVID-19 pandemic, regulators across the EU and in some jurisdictions further afield have been banning short selling for varying periods. Although there are many who are sceptical of the benefits of short selling bans, several EU states including France, Italy, Spain and Austria had bans in place since March with Italy’s CONSOB opting for a ban until 18th June. Germany, along with Britain which still operates under EU rules, held back in imposing market wide bans.
With over 100 developments tracked in the last month on ATLAS Funds Training, unsurprisingly COVID-19 continues to dominate the headlines. This month’s briefing covers the latest developments impacting asset managers, including: PRIIPs back in the spotlight with the EU divided over further reforms, Liquidity risk management, The renewal of short selling bans despite growing scepticism, The French AMF issuing fines, unhappy with the quality of AIFM reporting systems and considering proposals to reduce major shareholding thresholds, and The SEC’s proposed new framework for valuation practices.