FIN.

Category - Funds

Commission asks for views on UCITS KID

The Commission is asking for views on its proposal for a Directive on UCITS. The proposals relate to the use of KIDs by UCITS managers. The current exemption from the use of a PRIIPs KID for UCITS expires at the end of...

FCA writes to authorised fund managers on ESG

The FCA has written to the chairs of authorised fund managers setting out its expectations on the design, delivery and disclosure of environmental, social and governance (ESG) and sustainable investment funds. The FCA...

ESMA updates funds FAQs

ESMA has updated its FAQs: on the AIFMD, in relation to risk measurement and performance fees; and the UCITS Directive, in respect of how the guidelines apply to funds with multiple portfolio managers and performance...

FCA publishes Business Plan

FCA’s 2021/22 Business Plan highlights: how FCA has to change as the environment in which it operates changes and how investment in technology and changes in culture are key to this; the need to enable customers...

FCA finds “host” fund manager weaknesses

FCA has carried out a review of authorised fund managers that provide hosting services to third party investment managers outside of their corporate group. It concluded that some firms were operating well but others did...

ESMA finalises marketing guidelines

ESMA has clarified its guidelines on standards for fund marketing. Following its consultation, the guidelines detail how all marketing communications should: be identifiable as such; describe the risks and rewards of...

Update on AIFMD Delegation Rules

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 feeds back on Open Finance

FCA has published a policy statement following its call for input on Open Finance. The statement looks at how Open Banking is paving the way for more innovation, and notes the large number of regulatory sandbox...

FCA gives speech on diversity and inclusion

Georgina Philippou, Senior Adviser to FCA on the Public Sector Equality Duty gave a speech at the launch of a report by the Investment Associate and Eversheds entitled “Building Ethnic Diversity and Inclusion in...

ESAs agree PRIIPs KID changes

The ESAs have suggested to the European Commission a package of changes to the PRIIPs KID. The main proposals for change are: new methodologies to calculate appropriate performance scenarios and a revised presentation...

ESMA publishes fund distribution ITS

ESMA has published a report with implementing standards under the Regulation on cross-border fund distribution. The ITS focus on: publication on national regulatory websites of national requirements for marketing of...

HM Treasury extends consultation deadlines

Financial Services Future Regulatory Framework Review Phase II Consultation – further to the consultation document published on 19 October 2020, the consultation has been extended by one month to 19 February 2021...

ESMA speaks on challenges for fund managers

Verena Ross has spoken on the challenges for fund managers.  She spoke briefly of how the sector has responded to the pandemic so far, but focussed on Brexit. She said that firms have now had 4 years to prepare for the...

FCA updates on EEA regulator Brexit guidance

FCA has put together an information page sharing links to the websites of EEA regulators on which they have published guidance about the effects of Brexit on UK firms operating in their jurisdictions.  Some of the pages...

Commission consults on AIFMD review

The European Commission has launched a consultation on its review of the AIFMD.  The consultation is open until 29 January 2021. The Commission wants to gather views from AIFMs, distributors, industry representatives...

Lords responds to HMT on equivalence

Baroness Donaghy, chair of the House of Lords EU Services Sub-Committee, has responded to HMT’s letter of 21 September which set out the Government’s responses to previous queries of the Sub-Committee on UK...

HMT writes to House of Lords on equivalence

The Economic Secretary to HM Treasury, John Glen MP, has responded to the House of Lords EU Services Sub-Committee’s queries on UK-EU regulatory cooperation for UK financial services post-Brexit. In its letter to...

FCA launches open-ended funds survey

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 to reopen TPR window

FCA has updated its website pages on the Temporary Permissions Regime. It plans to reopen the TPR notification window on 30 September to allow for further new notifications, and to allow fund managers to update...

Treasury amends PRIIPs requirements

Treasury has published a policy statement on how it proposes to amend the PRIIPs Regulation as it onshores it. It plans early changes to address the most pressing concerns and to ensure the regime provides more...

Commission begins Brexit warning notices

The European Commission has stated the process of sending Stakeholder Preparedness Notices, to summarise for stakeholders the effect of Brexit on over 100 sectors.  It had originally published these notices during...

FCA reformats Brexit advice

FCA has revamped its information page on Brexit. The page gives advice to firms on what they should be considering in preparation for the end of the transition period. Much of the information is not news, and includes a...

Up next from FCA

Over the rest of 2020, FCA plans the following: consultations on mortgage borrowing and mortgage prisoners (now overdue), debt advice levy rates and exist fees in investment platforms (Summer 2020) and on financial...

Barnier speaks on Brexit

Michel Barnier has spoken at the Eurofi General Assembly on UK/EU relations.  He noted the desire to give the EU/UK negotiations “every chance of succeeding”.  He noted he had rescheduled many other meetings...

FCA makes new rules

FCA has published a Handbook Notice covering the rules it made at its May and June Board meetings. changes to COBs in relation to pension transfers, introducing a ban on contingent charging in respect of most advice on...

Commission reports on AIFMD impact

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...

ESMA opines on compliance function

ESMA has given new guidance on the MiFID 2 compliance function, replacing 2012 guidance.  The new version aims to provide more clarity and more convergence in implementation and supervision of the requirements of MiFID...

Up next from FCA

FCA’s latest Policy Development Update highlights the following publications due over the next few months: CP on marketing speculative illiquid securities to retail investors (including speculative mini-bonds); CP...

Government publishes draft EU/UK FTA

The Government has published a draft Comprehensive Free Trade Agreement between the UK and EU. Chapter 17 of the agreement relates to financial services, which it defines as “any service of a financial nature...

FCA updates on Covid-19 and complaints

FCA has updated its webpage on  how firms should be handling consumers’ complaints during Covid-19. The page explains that FCA has asked firms to prioritise making payments where consumers have accepted offers or...

FMLC responds on Overseas Funds Regime

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...

FCA sets out planned initiatives

FCA has published a grid prepared by the Financial Services Regulatory Initiatives Forum setting out the regulatory pipeline for the next 12 months.  The forum comprises FCA, PRA, BoE, the PSR and the CMA, with Treasury...

Government sets out equivalence views

John Glen has written to the Chair of the European Scrutiny Committee explaining the Government’s stance on equivalence in financial services.  The Government cannot provide great detail given the early stage of...

UK and Switzerland work to strengthen ties

Economiesuisse and The CityUK have been working on a joint position paper setting out how to strengthen the countries’ relationship in the time of coronavirus and in the future. In terms of financial services, the...

Regulator Covid-19 update 23 April

On 23 April: PRA followed up on its letter to insurers, noting that all insurers should consider carefully the previous letter and guidance on use of unrated assets and assessments of creditworthiness, and the...

FCA updates on funds expectations

FCA has updated its website in respect of funds and Covid-19. It has added sections on: its flexibility around statements on 10% portfolio value reporting – which is the same as for retail business as outlined by...

Regulator Covid-19 update 9 April

On 9 April, in addition to FCA’s confirmation of its new measures to help retail banking customers: ESMA told national regulators to adopt a risk-based approach where fund managers are unable to prepare periodic...

FCA consults on fees

FCA has published its fees and levies proposals for 2020/2021.  Covid-19 has affected FCA’s plans, and it is taking action to protect small and medium sized firms from the burden of regulatory fees.  Comments are...

ESMA publishes fund performance fee guidance

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...

Lords calls for UK/EU cooperation

The House of Lords EU Financial Affairs Committee has written to Rishi Sunak urging the government to set up a structured dialogue with the EU that will support cross-border financial services.  It wants: to minimise...

Regulator Covid-19 Update 26 March

On 26 March: FCA, while confirming its intention to be flexible to allow firms to keep operating, noted that they should also be planning ahead and ensuring sound management of their financial resources. It says buffers...

Government confirms extension of TTP

In a statement to Parliament, Lord Agnew of Oulton, the Minister of State, has noted a statement from Treasury that it expects “in general” the same laws and rules to apply as the transition period ends, it...

FCA makes statement on fund suspensions

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...

PIFMA concerned about Open Finance

PIFMA has responded to FCA’s call for input on open finance. While it applauds FCA’s stance on encouraging innovation, and feels the financial services sector has lagged behind other sectors in adopting...

EU writes to Chancellor on equivalence

Valdis Dombrovskis has written to Rishi Sunak on equivalence assessments. The letter merely notes that both sides should start to assess equivalence as soon as possible, on the basis of the Political Declaration, with a...

Treasury consults on overseas funds regime

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...

Treasury consults on UK/Gibraltar FS access

Treasury is consulting on the post-Brexit market access arrangements between the UK and Gibraltar. Constitutionally, Gibraltar is an Overseas Territory with internal self-government. Responsibility for financial...

Up next from FCA

FCA plans the following publications: consultation on exit fees in investment platforms and comparable firms (March); consultation on listing of OEICs (Q1); consultation on changes to DEPP, EG and the financial crime...

FCA feeds back on Patient Capital

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 writes to CEOs on end of LIBOR

FCA has written a Dear CEO letter to asset management firms on preparing for the end of LIBOR. It expects firms to take all reasonable steps to ensure the end of LIBOR does not lead to markets being disrupted or...

More UK/EU policies revealed

The Government has published a policy paper on its approach to the future relationship with the EU. It sets out the Government’s suite of proposals, based around the desire for a comprehensive Free Trade...

Financial services after Brexit updates

The EU Financial Affairs Sub-committee has opened an inquiry into financial services after Brexit and has been taking evidence. Most recently it has been questioning the BoE and FCA.  They largely discussed the key...

EP publishes negotiating mandate with UK

The European Parliament has published its proposed mandate for a new partnership with the UK.  The declaration acknowledges that the “close relationship” that will subsist and which, according to the...

Up next from FCA

The latest Policy Development Update highlights the following publications before the end of Q1 2020: policy statement on fees and levies; consultation on exit fees in investment platforms and comparable firms;...