Insights

Funds Bulletin

October 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.

Securities Financing Transactions Regulation

The European Securities and Markets Authority ("ESMA”) has confirmed that SFTR disclosure requirements are applicable to annual and semi-annual reports for UCITS and annual reports for AIFs published after 13 January 2017.

The UK’s vote to leave the EU - How will investment managers be affected?

The UK’s vote to leave the European Union has created significant uncertainty for investment managers, with implications for their investment strategies, their cross-border business, and potentially their ability to retain and attract staff. Firms will need to think ahead and be prepared to take some decisions in an uncertain environment.

The UK’s widely unexpected Leave vote has introduced uncertainty over the country’s economic growth prospects and has resulted in both tactical and strategic challenges for investment managers. Preparing for Brexit will be complicated by considerable uncertainty over the timing of the UK’s invoking Article 50, the negotiating stances of both the UK and the EU, and the ultimate outcome.

Country by Country Reporting Requirements

Ireland has implemented legislation on country by country reporting and signed a multilateral agreement (along with 30 other countries) providing for the automatic exchange of “country by country” (CbC) reports with other participating jurisdictions in relation to certain multinational (MNE) groups. Under the proposed provisions, countries will be required to exchange reports received with other participating jurisdictions.

Capital Markets Union Update: Cross Border Distribution of Funds

The European Commission has published a consultation entitled “CMU action on cross-border distribution of investment funds (UCITS, AIFs, ELTIFs, EuVECAs, EuSEFs) across the EU". This consultation complements other work currently being undertaken with the aim of proving a single market for investment products and asset managers.

ESMA Discussion Paper on Distributed Ledger Technology Applied to Securities Markets

Over the summer ESMA published a Discussion Paper on the Distributed Ledger Technology (“DLT”) Applied to Securities Markets, seeking feedback from stakeholders on the possible use of DLT in securities markets, its potential benefits and the risks that could potential arise for the use of such technology.

CBI Themed Inspection: Structured Retail Products in MiFID authorised Investment and Stockbroking Firms and Credit Institutions

On the 1st of September 2016 the Central Bank of Ireland (“CBI”) issued a Dear CEO letter to MiFID investment firms, stockbrokers and credit institutions.

The CBI outlines that it completed a themed inspection, which consisted of a desk-based review of 20 investment firms, stockbroking firms and credit institutions manufacturing and/or distributing structured retail products. It followed up with five on-site inspections. The CBI found that the firms are offering retail investors more complex and capital at risk products and that firms have been moving away from capital protected deposit – based products.

The Companies Act 2014: Impact on Irish UCITS Management Companies and Alternative Investment Fund Managers - Deadline 30 November 2016

The Companies Act 2014 (“the Act”) (subject to certain exceptions) commenced on 1 June 2015.

The Act give’s existing private limited liability companies the option to convert under the Act to a company limited by shares (LTD) or a designated activity company (DAC).

The Central Bank of Ireland (“CBI”) has confirmed it does not require UCITS management companies, Alternative Investment Fund (“AIF”) managers, AIF management companies, fund administrators, depositaries and investment firms to convert to designated activity companies (“DACs”).

The deadline for converting to a DAC was the 1st of September 2016.

Approaching deadline to convert to a LTD is 30th of November 2016

 

Performance Magazine

September 2016 - issue 21, the latest edition of this triannual topical digest for asset management professionals. 

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