NEWSLETTER

Fund News
Issue 111 - February 2014

Investment Fund Regulatory and Tax developments in selected jurisdictions

 

This month developments from:


European Union


Shadow Banking reforms - proposed regulation on the reporting and transparency of securities financing transactions

In addition to the proposal for the structural reform of the EU banking sector issued on 29 January 2014, the Commission also proposed accompanying measures to improve financial stability by increasing the transparency of certain so called ‘shadow-banking’ transactions, mainly securities lending and repos. Read more

MiFID II - final agreement reached

On 14 January 2014, the trialogue discussions between the European Commission, the European Parliament and the Council reached an agreement in principle to update the Markets in Financial Instruments Directive (“MiFID II”). The MiFID II reform will herald many changes to the trading rules in the EU, requiring trading to take place on regulated platforms, and introducing a trading obligation for derivatives to complement the clearing requirement already embodied within EMIR. Limits on the positions held in commodity derivatives will be introduced, as well as trading controls for algorithmic trading. Read more

ESMA publishes translations of AIFMD Guidelines

In January the European Securities and Markets Authority (“ESMA”) published on their website official translations of the Guidelines on sound remuneration policies under the AIFMD (Ref:2013/232), and of the Key concepts of the AIFMD (Ref:2013/611), these are available on their website: www.esma.europa.eu


UK


Draft legislation on the ‘bond fund’ rules

As discussed in issue 110 of Fund News, in January HM Revenue & Customs (“HMRC”) published draft legislation to enhance the existing anti-avoidance provisions so as to prevent abuse of the bond fund rules while retaining the existing rules which aim to support tax neutral delivery of corporate debt pooling via funds to investors. Read more


Luxembourg


CSSF updates FAQ on AIFMD

On 10 January the CSSF published the 4th version of their Frequently Asked Questions (“FAQ”) document concerning the AIFM law in Luxembourg. The CSSF has made additions to topics already covered in the prior version and added several new topics. Read more

CSSF issues circular on reporting obligations for AIFMs

The CSSF has issued Circular 14/581 clarifying the technical details that AIFMs need in order to fulfil their reporting obligations under the AIFM law. This document details the naming conventions for the reporting files, mechanisms to transfer the files electronically to the CSSF and certain codes and values which have to be included in the reporting files (e.g. national codes, reporting member state). The Circular is available at the following web link:

http://www.cssf.lu/fileadmin/files/Lois_reglements/
Circulaires/Hors_blanchiment_terrorisme/
cssf14_581.pdf


Ireland


New Irish fund vehicle – the Irish Collective Asset-management Vehicle (“ICAV”)

Further to our report in Issue 110, on 20 December 2013 the Minister for Finance published the general legislative scheme for the proposed Irish Collective Asset-management Vehicle Bill (the “General Scheme”). Read more

CBI’s implementation of ESMA Guidelines on ETFs and other UCITS issues

On 23 January the Central Bank of Ireland (“CBI”) published a memorandum of understanding (“MoU”) regarding the implementation of ESMA’s guidelines on ETFs and other UCITS issues (ref: ESMA/2012/832). The MoU states that an Irish UCITS authorised before 18 February 2013 can avail itself of the transitional provisions set out in ESMA’s guidelines. Read more

CBI consultation on publication of UCITS Rulebook - possible removal of the Promoter Requirement – Regulated Markets – Second Half Year Accounts for Man Cos & Depositaries

On 02 January 2014 the Central Bank of Ireland (”CBI”) published consultation paper 77 (“CP 77”) on the publication of a draft UCITS Rulebook which proposes to replace the CBI’s existing UCITS Notices and Guidance Notes with a single consolidated UCITS Rulebook which will facilitate greater clarity on UCITS requirements and avoid repetition or paraphrasing of the UCITS legislative provisions. Read more

Investment Funds AML guidelines published

On 23 January 2014 the Department of Finance published the ‘Investment Funds (Money Laundering and Terrorist Financing) Sectoral Guidelines’ (December 2013) (the “Sectoral Guidelines”). The aim of the Sectoral Guidelines is to provide industry specific guidance to designated persons on money laundering and terrorist financing in the investment funds sector and their obligations under the Criminal Justice (Money Laundering and Terrorist Financing) Acts 2010 – 2013 (the “Acts”). Read more

CBI’s improved authorisation process for MiFID investment firms

From 8 January 2014 the Central Bank of Ireland (“CBI”) introduced a faster and more efficient authorisation process for firms seeking authorisation as a MiFID investment firm. Simpler applications will be processed within three months and more complex applications will be processed within six months. The CBI has amended the MiFID firm application form to reflect differences in applicant’s risk profiles and has updated its guidance note for applicants.

Key dates reminder

Read more


Switzerland


Media of publication for collective investment schemes according to CISA and CISO

In its newsletter of 21 January 2014, the Swiss Financial Market Supervisory Authority (“FINMA”) referred to the necessary number of media of publication for collective investment schemes. FINMA stated that the media of publication could be either print media or even electronic platforms which have to be accessible by public and recognised by FINMA. In summary, the partial revision of the CISA and the CISO allows foreign collective investment schemes to focus on just one publication media. The possibility of the use of just one electronic platform instead of one or more print media or a combination could result in cost savings for foreign collective investment schemes admitted for distribution in Switzerland. Read more


International


FSB and IOSCO proposal for Non-bank Non-insurer Global Systemically Important Financial Institutions

On 8 January the Financial Stability Board (“FSB”) and the International Organisation of Securities Commissions (“IOSCO”) published proposed ‘Assessment Methodologies for Identifying Non-bank Non-insurer Global Systemically Important Financial Institutions (NBNI G-SIFIs)’. These are institutions, including both open-end and closed-end investment funds, whose distress or disorderly failure, because of their size, complexity and systemic inter-connectedness, would cause significant disruption to the wider financial system. Read more

IOSCO publishes Recommendations Regarding the Protection of Client Assets

On 29 January the IOSCO published a final report on Recommendations Regarding the Protection of Client Assets, which consists of eight principles to assist regulators improve the supervision of intermediaries holding client assets. The report (11 pages) and three appendices are available via the following web link:

http://www.iosco.org/library/pubdocs/pdf/IOSCOPD436.pdf

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For further details on any of these topics, or for any questions or queries you may have, please get in touch with your usual KPMG contact or one of the KPMG LLP (UK) contacts listed below

Tom Brown
Partner
Tel: 020 7694 2011

Jon Mills
Partner
Tel: 020 7311 6079

Gareth Horner
Partner
Audit
Tel: 013 1527 6951

Rachel Hanger
Partner
Tax
Tel: 020 7311 5328

Nathan Hall
Partner
Tax
Tel: 020 7311 5217

Paul Bradbury
Senior Manager
Tax
Tel: 020 7694 2946

Stefano Borsi
Partner
Tax
Tel: 013 1527 6816

Colin French
Senior Manager
Tax
Tel: 013 1527 6765

Paul Taylor
Senior Manager
Funds Regulatory
Tel: 020 7311 5116

Andrew Clark
Senior Manager
Accounting
Tel: 020 7311 1480

KPMG in Luxembourg Contact details

Audit
Ravi Beegun
Partner
Tel. +35222 5151 6248

Tax
Georges Bock
Partner
Tel. +35222 5151 5522

Advisory
Vincent Heymans
Partner
Tel. +35222 5151 7917

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