FCA has published a report from its review of how a sample of 10 asset management firms selected and used risk modelling and other portfolio management tools. Key conclusions were: firms found it hard to assess whether...
Author - Barry Stimpson
Barry Stimpson
Open-ended funds review progresses
The Bank of England and FCA have issued a joint statement following a report by the FPC of the progress of their joint investigation into risks poses by liquidity mismatches of open-ended funds. The FPC noted a number...
FCA fines for fund investor TCF failings
FCA has fined Henderson Investment Funds Limited (HIFL) nearly £2m for failure to treat fairly over 4,500 retail investors in two of its funds, thereby breaching Principle 6. FCA found the funds’ investment...
FCA announces next steps for unit-linked funds
FCA has published its findings and next steps on its review of governance practices covering unit-linked funds. It notes that its Asset Management Market Study found asset managers were not good enough at considering...
FCA explains UCITS liquidity problem
Andrew Bailey has written to Lord Myners explaining why FCA has not taken, and does not think it appropriate to take, action to establish its own requirements for liquidity standards for UCITS. The letter explains that...
Funds amendment legislation published in OJ
The Regulation on cross-border distribution of collective investment undertakings and Directive amending the UCITS Directive and AIFMD have been published in the OJEU. Many of the provisions of the Regulation take...
New Prospectus Regulations take effect in July
Treasury has amended the current UK rules on Prospectuses to implement the EU Prospectus Regulation which repeated the 2003 Prospectus Directive. The Regulations designate FCA as the UK Competent Authority and make...
The IA comments on fund suspension
The Investment Association, commenting on suspension and illiquidity in open-ended funds, said that it is necessary sometimes to suspend funds in the best interests of their investors – be they investors who want...
ESMA updates funds FAQs
ESMA has updated its FAQs on AIFMD and UCITS. The additions focus on depositaries, looking at: the distinction between depositary functions and supporting tasks that are not subject to the delegation rules in the...
FCA makes shareholder engagement and transparency rules
FCA has made new rules to improve shareholder engagement and increase transparency around stewardship. The new requirements take effect from 10 June. FCA will require: asset managers and life insurers to publish their...
ESMA updates funds and MAR FAQs
ESMA has updated its FAQs on: the application of the UCITS Directive to include clarification on benchmark disclosure obligations for UCITS both in the KIID and where funds name a target in their investment objectives...
AFME publishes no-deal selling restrictions
AFME has published suggested wording for selling restrictions for equity transactions to use in the event of a no-deal Brexit. It is designed for the most common scenarios and comprises an EEA public offer restriction...
ESMA issues FAQs under Prospectus Regulation
ESMA has published its first set of FAQs under the Prospectus Regulation. The questions look at: grandfathering of prospectuses approved under the 2003 Prospectus Directive applicability of guidance on the old Directive...
ESMA speaks on fund priorities
Steven Maijoor has spoken on ESMA’s priorities in fund regulation. He focused on how consumer investments progress over time, and the role of costs, looking at ESMA’s costs and performance report on retail...
FCA gives NPPR guidance
FCA has provided some further guidance to help firms filling in the NPPR forms.
Ireland and Luxembourg allay Brexit funds concerns
Ireland and Luxembourg have both made announcements designed to give comfort to their funds that use UK based portfolio managers: The Deputy Governor of the Bank of Ireland said in a speech that it was making good...
FCA consults on patient capital and permitted links
Following the Patient Capital Review on regulatory barriers to investment in illiquid “patient capital” assets FCA is consulting on: changes to the COBS 21.3 permitted links rules to enable retail investors...
BEIS confirms AML safeguards for partnerships
BEIS has published its response to its consultation on the reform of Limited Partnership law. It has confirmed new measures, applicable to all limited partnerships in the UK (and, for Scottish Limited Partnerships, in...
MEPs vote on fund marketing changes
MEPs in ECON have voted through the proposals for changes to the rules on cross-border investment fund distribution. As part of the vote, they stipulated that marketing communications should be clearly identified as...
FMLC comments on funds onshoring measures
FMLC has noted a number of legal uncertainties in the various draft onshoring legislation relating to investment funds and their managers. In relation to the drafts for AIFMs and Collective Investment Schemes, FMLC has...
FCA outlines temporary permissions for funds
FCA has outlined how its temporary permissions Brexit regime will work for inbound EEA firms and funds. FCA carried out a survey earlier in the year for affected firms and funds, and urges relevant firms to complete it...
ESMA updates AIFMD FAQ
ESMA has updated its AIFMD FAQs to include questions on how notification requirements apply to AIFMs managing umbrella AIFs on a cross-border basis.
ILPA updates members on activities
ILPA‘s (the Institutional Limited Partners Association) latest member update includes items on: a comment letter in response to SEC’s proposed Interpretation on the standard of conduct for investment...
ESMA response to EIOPA on AIFMD
ESMA has responded to some queries EIOPA raised with it on the definition of AIF and leverage in the AIFMD. EIOPA had asked: whether AIFs that use certain borrowing arrangements and derivative instruments under the...
ESMA updates funds FAQs
ESMA has updated its FAQs on the UCITS Directive and the AIFMD. New questions include those addressing when UCITS invest in UCITS with different investment policies and supervision of branches of UCITS management...
Prospectus exemptions amended
The FSMA (Prospectus and Markets in Financial Instruments) Regulations 2018 take effect on 21 July and amend two of the thresholds that trigger the requirement to produce a prospectus. The changes reflect the 2017 EU...
ESMA updates UCITS FAQ
ESMA has updated its FAQs on the application of the UCITS Directive. The additions look at how to apply remuneration disclosure requirements to staff or the delegate of a UCITS management company who have been delegated...
FCA speaks on asset management
Andrew Bailey has given a regulatory perspective on asset management. His speech considered: market-wide risks: he looked at the growth in the asset management sector and particularly the increase in proportionate...
FCA focuses on closet trackers
FCA has updated on its work reviewing potential closet tracker funds and closet constrained funds – funds that look like and charge fees in the same way as active funds do, but are managed like passive funds...
Commission launches AIFMD survey
The European Commission is carrying out a survey on how the AIFMD has worked in practice and how it has met its objectives. Anyone can respond to the online survey.
FCA updates AIFMD transparency reporting information
FCA has published updated guidance on reporting Annex IV transparency information under the Alternative Investment Fund Managers Directive (AIFMD). The document details: Transparency reporting requirements (pursuant to...
ILPA issues Model Subscription Agreement
In December, the Institutional Limited Partners Association (ILPA) issued the first in a series of model documents to be produced through its Limited Partnership Agreement (LPA) Simplification Initiative. The Model...
Government to tax non-residents on UK commercial property disposals
The Chancellor announced in his Budget statement that he intends to bring gains made by non-UK residents from the disposal of UK commercial property within the UK tax net. Our briefing looks at the details of the...
Commission publishes funds distribution responses
The Commission’s consultation on cross border distribution of investment funds closed on 9 October, and the Commission has now published the 62 responses it received.
Government announces Asset Management Taskforce
Stephen Barclay, City Minister, announced the creation of an Asset Management Taskforce to preserve the UK’s leading position as an asset management hub. Among his comments, he said: the Government sees delegation...
HFSB changes name
The Hedge Funds Standards Board has changed its name to the Standards Board for Alternative Investments, to reflect the evolution of the alternative investment industry.
ESMA publishes opinion on asset segregation and depositary delegation
On 20 July ESMA published its opinion on asset segregation and the application of depositary delegation rules to central securities depositaries (CSDs). In the opinion, ESMA outlines its view on: the optimal approach to...
FCA finds funds should consider external risks
FCA’s review of fund suspensions and pricing adjustments following the Brexit vote has indicated that property funds should plan better to take external events into account so they can deal with liquidity risks. ...
ESMA updates funds FAQs
ESMA has updated its FAQs in relation to UCITS and the AIFMD. The additions relate to: on the AIFMD, reporting requirements for loans purchased on the secondary market, conversion of total value of AUM and currency of...
The conundrum of open-ended property funds
Property Funds can be either closed ended or open ended. In a closed ended fund (such as a Real Estate Investment Trust or “REIT”), the amount of equity invested is fixed and investors may gain liquidity by...
IOSCO consults on fund liquidity risk management
IOSCO is consulting on recommendations and good practices in liquidity risk management for funds, and has accompanied the consultation with examples of good and bad practices. The consultation builds on a report in 2013...
Changes to SLP PSC requirements published
The Scottish Partnerships (Register of People with Significant Control) Regulations 2017, made on 22 June and taking effect mainly from 26 June, have been published. The Regulations transpose Article 30 of MLD4 on...
FCA publishes final asset management market study report
FCA has published the final findings from its asset management market study. It has considered the responses it received following its interim report and is now proposing a package of remedies falling into three broad...
ESMA updates funds FAQs
ESMA has updated its FAQs on the AIFMD and the UCITS Directive. Both address the exemption for intra-group transactions for the purposes of EMIR. The AIFMD set also addresses notifications of AIFs domiciled in another...
ESMA reports on fund notifications
ESMA has published a report on notification frameworks and home-host responsibilities under the UCITS and AIFMD regimes. It carried out a study looking at the cross-border management and marketing activities of UCITS...
ESMA updates funds FAQs
ESMA has updated its FAQs on AIFMD and UCITS. The additions focus on: clarifying that the AIFMD marketing passport under Article 32 AIFMD can be used only for marketing to professional investors as defined in AIFMD and...
Private Fund Limited Partnerships introduced
The Legislative Reform (Private Fund Limited Partnerships) Order 2017 comes into force on 6 April and amends the Limited Partnerships Act to introduce the “private fund limited partnership”. Treasury has...
Investment Association consults on disclosure
The Investment Association is consulting on an industry code for standardising disclosure for charges and transaction costs. The Code is designed to help trustees and governance committees of pension funds to access and...
IA updates authorised funds guidance
The Investment Association (IA) has published an updated version of its guidance for members on authorised funds. This is a document designed for use by investors who are considering investment in a UK authorised fund...
FCA looks at illiquid asset risks
FCA has published a discussion paper looking at the issues that arise when open-ended funds invest in illiquid assets, such as real estate, infrastructure and unlisted securities. It seeks views generally, but also...
Treasury proposes limited partnership changes
Treasury has published a draft legislative reform order to amend the Limited Partnerships Act 1907 in respect of private investment funds, such as venture capital and private equity funds. The proposals include the...