Funds Bulletin

April 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.

AIFMD makes depositaries subject to far more detailed and prescriptive rules, which are driving changes to operational risk assessment, pricing structures, capital requirements and the depositary’s interaction with other industry participants.

This White Paper seeks to address these fundamental considerations by offering a methodology for evaluating depositary capital requirements and for determining a risk-based pricing strategy post AIFMD. To benchmark our analysis against industry trends, we also conducted a survey of 14 major European depositaries.

Far reaching reform of the OTC derivatives markets is taking shape in Europe under the European Markets Infrastructure Regulation (EMIR). We expect the price for this regulation to be an additional total annual cost of €15.5 billion for the OTC derivatives market in the EU.

After several months of delay and political wrangling, UCITS V was approved by the European Parliament on 15 April 2014, just days before the end of term. For the most part, UCITS V aligns with AIFMD on remuneration and depositary requirements and additionally lays down a new framework on the application of sanctions for breaches of UCITS rules.

While many of the UCITS V requirements will be familiar to the industry under AIFMD, applying the depositary and remuneration framework to the much larger UCITS sector will certainly present practical challenges.

ESMA has revised its position on the new 20% issuer diversification requirement in relation to collateral received by a UCITS. A UCITS may now be fully collateralised in government backed securities, provided it meets alternative diversification and disclosure requirements.

IRS releases final form W-8BEN-E for entities.

Read the full update for an overview of the modifications to the final Form W-8BEN-E compared to the May 20, 2013 draft released last year.

On April 2, 2014, the U.S. Treasury Department issued Announcement 2014-17 to indicate that it will treat more than a dozen countries that have agreed in substance on the terms of an IGA with the United States as having signed bilateral agreements until the end of the year.

In addition, the U.S. Treasury Department has announced they are extending the FFI registration deadline from April 25 to May 5, 2014 giving institutions 10 more days to register with the IRS as a Participating Foreign Financial Institution. 

Led by Deloitte’s industry experts, Link’n Learn is a series of free of charge webinars conducted during 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. An hour of your time is all you need to log on and tune in to each informative webinar.

Presentations from recent webinars:

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  • Evolution of UCITS
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  • The future for UCITS

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