12 Days of Christmas Legal, Regulatory and Tax updates 2018

12. Closing the gap in fintech collaboration

Overcoming obstacles to a symbiotic relationship

No function, department, or individual seems immune in an environment where the nature of work across almost every industry is being disrupted by a number of factors. Rapidly evolving digital technology is driving increased automation, affecting the proximity of where work is performed, and giving rise to new and open talent models. With so much change in the air, many provider organisations are understandably apprehensive about how to grapple with such exponential change and its implications on how, where, and by whom work gets done. What these organisations need to keep in mind with this shift is the immense opportunity to alleviate current pain points like nursing shortages and physician burnout, and refocus professions on mission oriented, fulfilling work.

11. Active ETFs - An innovative driver of ETF growth

The significant growth in the assets under management of Active ETFs is the result of an evolution of the environment in which they operate. Whilst Passive ETFs must, by their inherent nature, carry a portfolio which is relative to their benchmark and, more specifically, the market-cap of the investments within that benchmark, actively managed ETFs offer their managers with more scope to employ innovation in an attempt to beat the performance of the index. Somea reas we discuss are:

• Overview of the Active ETF market
• Drivers for growth in ETFs
• Technology and innovation as accelerators  

10. 2019 Investment Management Industry Outlook

Asset management trends indicate another year of challenges

Investment management is in a period of rapid change, driven by shifting investor preferences, margin compression, regulatory developments, and advancing technologies. Our 2019 Investment Management Outlook highlights three keys to managing these challenges as our market evolves: Choosing the right growth options, creating operational efficiencies, and delivering the next level of customer experience.

Topics discussed include:

• 2019: Another year of challenges with new opportunities for success
• Picking the right growth option
• Creating operational efficiencies
• Delivering the next level of customer experience
• 2019: Execution drives success
   

9. Money Market Fund ('MMF') Update 2018

The scope of the Money Market funds regulation concerns all the Undertakings for the Collective Investment of Transferable Securities (UCITS) and Alternative Investment Funds (AIFs) that are established, managed and marketed in the Union and invest in short-term assets (meaning financial assets with a residual maturity not exceeding two years) and have distinct or cumulative objectives offering returns in line with money market rates or preserving the value of the investment. Moreover, we can find under scope of the Money market fund regulation all the funds labelled ‘Money Market Fund’ or ‘MMF'.

The MMF Regulation applies directly in every EU Member State on 21 July 2017. Existing money market funds will have to comply with the new Regulation by 21 January 2019.

8. 2018 fair valuation pricing survey

Investment managers are starting to make moves in adopting innovative technologies like data analytics, robotics process automation, and natural language processing. Where are investments in innovation being made and how will these technologies shape the future of valuation? The 16th edition of our fair valuation pricing survey takes a closer look.

Investment companies continue to focus on having the right people and processes in place to achieve their best estimates of fair value for each investment. The results of the FV survey suggest several emerging areas that may be points of special focus over the coming year for management and boards, many of which relate to the exploration of greater innovation in the valuation process and the benefits and challenges that may bubble up from taking a deeper dive into uncharted waters.

7. Are you ready for PAYE Modernisation?

PAYE Modernisation, the “real-time” reporting regime for PAYE will go live on 1 January 2019.

At this point, employers in the funds industry will have received a number of letters from Revenue highlighting the new regime. You will have received a request to submit a list of your employees to Revenue, the deadline for which was 31 October. You may also have received a Customer Service visit from a local Revenue officer. Revenue have undertaken a national campaign, holding over 100 seminars around the country and running media advertisements. In summary, your payroll reporting obligations are changing.
 

6. Financial Markets Regulatory Outlook Predictions 2019

At a glance
We have identified six cross-sector themes of strategic significance for the financial services industry in 2019.

Alongside our six cross-sector themes, we have also identified six supervisory constants – although not new, these will be important areas of supervisory focus in 2019.

We also have a number of sector specific themes, related to Banking, Capital Markets, Insurance, and Investment Management respectively.

A snapshot of each theme is contained in the tabs on the full article page, or you can access a full summary of our predictions with our regulatory  tool.

5. Casey Quirk's - Industrial Evolution: Securing Profitable Growth in Tomorrow’s Asset Management Industry

New customer needs and market structures will force asset managers to adapt their value propositions and business models in order to remain vibrant and valuable. Those who cannot—and in an oversupplied marketplace, there are many such firms - likely will peak in terms of franchise value and steadily, if slowly, shrink in terms of size, profitability and influence. Questions regarding this industrywide transition no longer focus on why or when, but how: what new competitive advantages are required to win, and what is the best way for complex asset management firms to fund and execute these difficult transitions?

This white paper explores the root causes and necessary elements of effectively transforming today’s asset managers into tomorrow’s market leaders: growing, valuable franchises that attract clients and shareholders. There are four primary conclusions:

• Challenges persist in the operating environment
• A shrinking number of winners keep separating from the pack
• Reinvesting in competitive advantage pays off
• Executing these changes will require new leadership skills

4. Fund Accounting Updates

How changes to the Companies Act impact Investment Funds?

SI 360 focuses on enhancing the disclosure of non-financial and diversity information by certain large undertakings and groups and is applicable for financial years commencing on or after 1 August 2017. The disclosure of non-financial information does not impact investment funds unless certain criteria are met. In this article we look at what they are and what a diversity report should include.

What are the key changes coming out of the FRC triennial review of FRS 102?

The Financial Reporting Council (FRC) has published incremental improvements and clarifications to FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’. The amendments have arisen as a result of the first triennial review of FRS 102 and after taking into account stakeholder feedback on the implementation of FRS 102 and recent developments in financial reporting.
 

3. Upcoming tax deadlines for funds

Fund promoters should ensure that Irish resident companies within their corporate structure meet their applicable upcoming tax filing/payment deadlines. A non-exhaustive list is outlined in the full article available to view to the side.

2. How to avoid the common pitfalls on MiFID II transaction reporting

Transaction reporting was a key focus in MiFID I. Twelve firms were fined a total of £33m by the Financial Conduct Authority (FCA) and further fines were levied across the EU. With the greatly expanded rules under MiFID II, there are even more pitfalls. Our survey of ten EU regulators revealed that six of these are currently undertaking or planning supervisory activities on MiFID II transaction reporting, the FCA among them.

Our assessment of the five main causes of poor data quality:

• Poor change management
• Insufficient data governance
• Lack of oversight / governance
• Inadequate data quality assurance
• Lack of standardisation

1. How artificial intelligence is transforming Investment Management

AI is enabling investment managers to adapt their business models by altering or replacing core differentiating capabilities. AI is allowing wealth advisors to provide a personal and targeted investment advice to mass-market customers in a cost-effective manner. It is taking on a growing portion of investment management responsibility, delivering high-quality service at a lower cost. AI-driven personalised portfolio management enables more tailored customer experiences and better investment outcomes. AI enables institutions to serve low-income markets in a cost-effective manner. It can be used to generate products with new return profiles that are uncorrelated with established strategies. 

Read the full report on how artificial intelligence is transforming the financial ecosystem.