Asset Management Bulletin


Asset Management Bulletin

June 2019

The Deloitte Asset Management Bulletin delivers you our latest updates and insights on industry and regulatory developments. We hope you find this edition useful and please contact us if you have any queries.

Revised Central Bank of Ireland UCITS Regulation 2019

The CBI UCITS Regulations set out the CBI’s rules governing Irish domiciled UCITS and UCITS management companies and also includes the CBI’s obligations on Irish domiciled depositaries. The revised CBI UCITS Regulations 2019 are the result of a consultation process with the CBI which began last year and they place on a statutory footing provisions previously contained in CBI guidance.

Accompanying the revised CBI UCITS Regulations is a feedback statement on the consultation process and an updated edition of the CBI UCITS Q&A which help to clarify some of the provisions of the revised CBI UCITS Regulations 2019. The CBI UCITS Regulations 2019 apply from the 27th of May 2019 (subject to certain exemptions).

Avoiding the Impending Storm - Financial Risks from Climate Change

In recent years, the effects of climate change have become more apparent, attracting attention from financial regulators globally. The regulatory response to a transition to a greener economy is currently accelerating rapidly. A number of EU initiatives put climate change at the forefont of the financial regulatory agenda, and it is clear that the UK regulators will take an active lead.

Against a backdrop of institutional investor pressure and industry actions, central banks and regulators are placing a greater focus on the financial risks that arise from climate change. Banks and insurers increasingly need to think about how to adapt their business models and how the transition to a low-carbon economy may affect the business models and creditworthiness of the companies to which they are exposed.

Liquidity Stress Testing for alternative investment funds (“AIFs”) and Undertakings for the Collective Investment in Transferable Securities (“UCITS”)

Back in April 2018, the European Systemic Risk Board (“ESRB”) published a set of recommendations to address liquidity and leverage risk in investment funds. Liquidity risk is the risk that assets cannot be sold quickly enough to meet investors’ redemption requests.

The European Systemic Risk Board (“ESRB”) requested ESMA, to “develop guidance on the practice to the followed by managers for the stress testing of liquidity risks for individual AIFs and UCITS”.

Performance Magazine - Issue 29

Articles in this edition include:

  • Rethinking reward strategies
  • PIR light and shadow
  • Looking to the future
  • Mastering the art of ESG data
  • Focus on your strengths, white label the rest
  • The Placement Agent's View
  • Wealth managers at a crossroads
  • Digitizing investment suitability
  • Just another day at the (middle) office?
  • Liquidity risk management - a look at the tools available
  • If you think investment managers have flown under the Australian Royal Commission radar, think again
  • The investment revolution?

IFR/IFD: a new made-to-measure prudential regime for EU investment firms?

On 16 April, the European Parliament adopted in Plenary a Regulation on the prudential requirements for investment firms (IFR) and a Directive on the prudential supervision of investment firms (IFD). IFR/IFD introduces a new prudential regime for certain investment firms, tailored to their activities and asset size. While many investment firms will see a tailored regime as a positive step, the implications of the new regime will differ from firm to firm. Each firm will need to assess what the regime change means for it and take action accordingly. IFR/IFD also revises the MiFID II/MiFIR third-country regime for investment services. This blog provides a summary of the changes contained in IFR/IFD.

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