Funds Bulletin April 2016

Insights

Funds Bulletin

April 2016

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

Common Reporting Standard: Impact on Listed Funds

The Common Reporting Standard (CRS) is now live and has brought with it a number of new regulatory requirements for in-scope Financial Institutions. One key change is the absence of a reporting exemption for listed equity and debt. This is contrary to the US FATCA position where the definition of in-scope accounts specifically excluded equity and debt interests in investment entities where those interests were regularly traded on an established securities market.

UCITS V Directive (“UCITS V”) – Snapshot April 2016

Ireland is one of the first EU member states to implement UCITS V, highlighting once again Ireland’s commitment to the international financial services sector. On the 21st of March 2016, the Irish Minister for Finance signed into law the European Union (Undertakings for Collective Investment in Transferable Securities) (Amendment) Regulations 2016 (“UCITS Regulations”). In this snapshot Deloitte will discuss the practical implications for UCITS, UCITS Management Companies and depositaries.

The Fourth EU Anti-Money Laundering Directive: European Commission Update

In December 2015, the European Commission proposed a Directive on combatting terrorism which criminalises terrorist financing and the funding of recruitment, training and travel for terrorism purposes. The European Commission is now proposing further ways to tackle the abuse of the financial system for terrorist financing purposes. The European Commission is calling on Member States to commit to a further enhanced Action Plan in regards the Fourth AML Directive by the end of 2016.

FRC Issues Amendments to Fair Value Disclosures in FRS 102

On 8 March, the Financial Reporting Council (FRC) has issued ammendments to FRS 102 - Fair value hierarchy disclosures. The amendments aim to simplify the preparation of disclosures about financial instruments for financial institutions and retirement benefit plans.

The amendments more closely align the relevant disclosure requirements with those in IFRS 13 Fair Value Measurement and have removed the requirement to follow the hierarchy as set out in paragraph 11.27 of FRS 102. The amendments effective for accounting periods beginning on or after 1 January 2017, with early application permitted. Entities can apply the changes in financial statements for accounting periods that ended on 31 December 2015, if those financial statements have yet to be approved.

Is RegTech the new FinTech? - How agile regulatory technology is helping firms better understand and manage their risks

Regulation is one of a number of services to receive the ‘Tech’ treatment in recent times. As with its bigger brother FinTech, the definition of RegTech will mean different things to different people in this developing area. While the name is new, the marriage of technology and regulation to address regulatory challenges has existed for some time with varying degrees of success. Increasing levels of regulation and a greater focus on data and reporting has however brought the RegTech offering into greater focus thereby creating more value for the firms that invest in these solutions.

This article is based on research and interviews we undertook with RegTech companies and seeks to explore how firms can benefit from regulatory technology and how they can leverage regulatory focused data to better understand and manage their compliance risks.

ICAV Update: Jersey

1 February 2016 : Statutory instruments S.I.44/2016 and S.I. 45/2016 were signed in to law by the Irish Minister for Finance.

Jersey is now a jurisdiction from which funds can migrate to Ireland and become an ICAV (UCITS or AIF) and Irish ICAVs will be able to move to Jersey without the need to wind-up.

Jersey joins the British Virgin Island and the Cayman Islands as jurisdictions which can migrate under the ICAV Act.

Global Exchange Market

GEM - Investment Funds: Investment funds can now list securities on GEM. The Irish Stock Exchange released the Rules for Investment Funds effective from 4 April 2016.

Published Findings of the Conflicts of Interest Themed Inspection in Investment Firms by the Central Bank of Ireland

The Central Bank letter outlines the key findings from the themed inspection, actions to be taken by firms to review their conflicts of interest practices and identified good and poor practices.

The key findings arising from the themed inspection are as follows:

  • General Trends
  • Personal Account Dealing
  • Gifts and Entertainment
  • Intragroup Relationships
  • Best in class approach to conflicts of interest
     

NEW! Link'n Learn - PRIIPs

Thursday, 28 April from 4 p.m. to 5 p.m. GMT

Agenda:

Part 1: Setting the scene: PRIIPs summary

  • Defining the objectives of PRIIPs’ Regulation 
  • Types of products in scope
  • Timeline and main information

Part 2: Key Information Document

  • KID content dissected
  • Risk & reward section
  • KID update and refresh
  • Challenges

Part 3: UCITS – Lessons learned

  • Design
  • Calculation
  • Digitalization, dissemination and publication

Join our webinar

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