Insights

Funds Bulletin

December 2014

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.

UCITS V: Depositaries - ESMA's feedback on delegated acts

On 28 November 2014, ESMA published its final advice to the European Commission on the content for two of the delegated acts required by UCITS V. These relate to the insolvency protection of UCITS assets when delegating safekeeping, and to the depositary’s obligation to be independent of the UCITS and its management company.

UCITS V requires the third party to whom the custody functions are delegated to take all necessary steps to ensure that any UCITS assets it holds in custody are unavailable to its creditors on its insolvency. UCITS V states that “In carrying out their respective functions, the UCITS management company the depositary shall act independently and solely in the interest of the UCITS and the investors of the UCITS”.

AIFMD – Consultation Paper - ‘Guidelines on asset aggregation under the AIFMD’

On 1 December 2014 ESMA issued a Consultation Paper on ‘Guidelines on asset segregation under the AIFMD’.

It outlines two alternative proposals for possible guidelines regarding asset segregation when the depositary of an AIF delegates its safe-keeping duties.

The consultation closes on 30 January 2015 and ESMA aims to issue final guidelines and it's final report in 2015.

AIFMD – Consultation Paper

 ‘Guidelines on asset aggregation under the AIFMD’

AIFMD passport and third country AIFMs and AIFs

ESMA consults on extending the EU passport to non-EU managers and funds.

On Friday 7th November 2014, the European Securities and Markets Authority (ESMA) issued a ‘Call for Evidence’ as the first step in its process of considering whether to extend the AIFMD EU passport to non-EU managers and non-EU funds.

AIFMD passport and third country AIFMs and AIFs

ESMA consults on extending the EU passport to non-EU managers and funds

Companies Bill - Key impacts for investment companies and fund managers

The Companies Bill 2012 (the Bill) passed the final stage before enactment on 10 December 2014. It is expected to be signed by the President later in December and to be in force from 1 June 2015. The proposed changes will consolidate the existing Companies Acts, simplify Company Law and introduce some welcome reforms. The Bill will affect all Irish companies, including fund service providers such as administrators and depositaries, fund managers of both UCITS and AIFs, as well as investment companies. 

The Companies Bill

Key impacts for investment companies and fund managers

Gareth Murphy's address to the IFIA

At the Annual UK Symposium of the Irish Funds Industry Association (IFIA) on 28 November 2014, Mr. Gareth Murphy, the Director of Market Supervision of the Central Bank, summarised the current Irish and European regulatory initiatives, and gave his thoughts on the anticipated next wave of European regulatory developments.

Discussing Irish developments, he focused on recent consultation papers issued by the Central Bank of Ireland including CP84 (CP84 is the "Consultation on the adoption of ESMA's revised guidelines on ETFs and other UCITS issues"), CP86 (CP86 is the "Consultation on Fund Management Company Effectiveness - Delegate Oversight") and the recently launched Loan Origination QIAIF.

He stressed the importance of stakeholders participating in ESMA’s debate on asset segregation under AIFMD, as well as the AIFMD third country passport, the UCITS V depositary related delegated acts and Money Market Funds.

Mr. Murphy stressed the need to take stock of existing regulation and to reflect “on what ‘good’ and ‘bad’ looks like when viewed through the prism of a disciplined process of regulatory policy formation, as we have had many examples of both over the last five years.”

His concluding remarks highlighted the CBI’s goals of investor protection, safe-guarding financial stability and preserving market integrity.
 

The FCA announces important changes to its strategy

The Financial Conduct Authority (FCA) has unveiled a new strategy, which will aim to provide a "sharper focus" on how firms are regulated and on delivering the right outcome for consumers and markets. It also announced a number of key changes to organisational structure and personnel. Clive Adamson (Director of Supervision), Victoria Raffe (Director of Authorisations) and Zitah McMillan (Director of Communications and International) are all leaving the FCA. 

The FCA announces important changes to its strategy

Key changes to organisational structure and personnel

Link'n Learn webinar series

Led by Deloitte’s leading industry experts, Link’n Learn is a series of webinars conducted over the course of the year, specifically designed to keep you up-to-date with today’s critical trends and the latest regulations impacting your business.

The webinars are recorded and these recordings are available online in MP4 format after each session.

Please join our new series in 2015 where we will be kicking off with: "Regulatory outlook for 2015" on Thursday the 22nd of January.

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