The EU has been saying for some time that it wishes to review the rules by which EU AIFMs may delegate investment management to entities outside of the EU. In its August 2020 letter regarding the review of the AIFMD...
FCA has updated on its August 2020 proposals to reduce the potential harm to investors from the liquidity mismatch in property open-ended funds. It had proposed that funds should have notice periods before an...
Treasury has published a Call for Input on the UK funds regime. It views Brexit and the emergence from the pandemic as an opportunity to improve the funds regime to give a wider range of more efficient investments...
FCA has announced its plans to end the temporary reliefs it had given to fund managers to give them more time to produce their periodic reports. It plans: to keep the relief in place for funds with an annual or half...
FCA has published a survey to kick-start the joint review it and the BoE are carrying out of liquidity mismatch in open ended funds. The survey was originally due to launch in March. It has asked asset managers to...
FCA is consulting on reducing the potential for investor harm from the liquidity mismatch in open-ended property funds. Investor harm is caused by the fact that investors can redeem frequently, often daily, yet the...
Christopher Woolard has spoken to the IA on the role investment managers could play in the post-Covid recovery. He said he is very proud of what FCA has managed to achieve during the crisis to provide the regulatory...
The European Commission has published the report required by the AIFMD on the effects the Directive has had on the alternative investment funds industry. Its review covered 13 Member States, selected to give a broad...
FMLC has published its response to Treasury’s consultation on a new Overseas Funds Regime. It notes: the uncertainty around the timing of the start of the new regime – and whether the new regime will overlap...
ESMA has published guidance on performance fees in investment funds, applicable to UCITS and AIFs that are open-ended (but not EuVECAs). The guidelines are designed to harmonise the way fund managers charge performance...
FCA has noted that some managers of commercial real estate funds have suspended dealings on the basis of current material uncertainty over the value of the underlying property, and says that suspension is likely to be...
Treasury is consulting on the process for allowing overseas investment funds to be marketed in the UK. It says the current regime (Brexit apart) is not viable in the long-term, and proposes two new regimes, one for...
FCA has published feedback on its discussion paper on Patient Capital and authorised funds. The paper had asked whether there are any unnecessary barriers to investing in long term (patient) assets through authorised...
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...
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 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 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...
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...
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...
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 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 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 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 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 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 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...
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...
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...
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 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 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 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 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...
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 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 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...
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 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...
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 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...
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 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...
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...
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...
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.
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...
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.
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’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 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...
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 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...
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 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 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 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 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...
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...
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...
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 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 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...
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