Investment Funds Update – Europe: Legal and regulating updates for that funds industry in the key resource management centres and primary European fund domiciles – The month of january 2016 – Issue 12: Eu Legal Developments

AIFMD – ESMA Updates its Q&A on AIFMD Application

ESMA up-to-date its questions and solutions on the use of the AIFMD on 2 and 15 December 2015. The Two December update focussed on various questions around leverage and liquidity disclosures. The 15 December update focussed on clarification round the “look through” foundation of depositary liability.

EMIR – Confirmed Start Date for Clearing and New CCP Cooperation Agreements

ESMA has confirmed the beginning date for clearing of EUR, GBP, JPY and USD denominated basis and glued-to-floating rate of interest swaps in addition to EUR, GBP and USD denominated forward rate contracts and overnight index swaps – 21 June 2016 for “Category 1” organizations, 21 December 2016 for “Category 2” organizations and 21 June 2017 for: “Category 3” organizations.

For additional information, begin to see the Dechert OnPoint ‘Confirmed Start Dates for Clearing Under EMIR’

ESMA confirmed it had joined into co-operation contracts with Canadian and Swiss government bodies on CCP recognition on 7 The month of january 2016.

MiFID II – ESMA Issues Final Reports on the Assessment of Knowledge and Competence, Cross Selling Practices and Transaction Reporting

ESMA released its final set of recommendations for that assessment of understanding and competence under MiFID II on 17 December 2015. These recommendations enter into pressure on 3 The month of january 2017, and specify the factors for that assessment from the necessary understanding and competence needs of investment firms’ staff.

Browse the pr release ‘ESMA Publishes Final Set of MiFID II Recommendations on Assessment and Understanding of Competence’

ESMA also released its final set of recommendations on mix-selling practice under MiFID II on 22 December 2015. These recommendations enter into pressure on 3 The month of january 2017, and can include concepts on enhancing disclosures when items are mix offered, addressing conflicts of great interest and enhancing understanding on whether buying individual items offered in package can be done.

Browse the pr release ‘ESMA issues MiFID II Recommendations on Mix-Selling Practices’

ESMA released an appointment paper on recommendations on transaction confirming, reference data, order documentation & clock synchronisation on 23 December 2015. The consultation is open for comment until 23 March 2016.

Browse the pr release ‘ESMA Consults on Transaction Confirming, Reference Data, Record-Keeping and Clock Synchronisation Under MIFIR’

Other EU Developments – Transparency of Securities Financing Transaction Regulation, Remuneration Policies and EU Regulatory Work Programme

The regulation on transparency of investments financing transactions as well as reuse (the “SFTR”) was printed on 23 December 2015. The SFTR will ultimately bring an EMIR-style transaction confirming regime to investments lending, needing counterparties to report investments financing transactions to some trade repository.

For additional information, begin to see the Dechert OnPoint ‘New EU Regulation on Investments Financing Transactions and Reuse of Collateral’

The EBA printed final recommendations on seem remuneration guidelines and it is opinion on the use of proportionality on 21 December 2015. The recommendations goal to make sure that institutions calculate properly and consistently the so known as ‘bonus cap’ by aiming specific criteria for mapping all remuneration components into either fixed or variable pay and detailing how specific remuneration elements for example allowances, sign-on bonuses, retention bonuses and severance pay should be recognised.

Browse the pr release ‘EBA Publishes Final Recommendations on Seem Remuneration Guidelines and it is Opinion on the use of Proportionality’

The opinion can be obtained around the EBA website.

The EU Council printed its work programme for the following 18 several weeks on 30 December. The next areas is going to be focal points:

  • Money Market Funds Regulation
  • Banking Structural Reform Regulation
  • Single Resolution Mechanism implementation
  • Upcoming proposal on the Resolution of Central Counterparties (“non-bank resolution”)
  • Review of funding and governance of structures of European Supervisory Authorities
  • European Deposit Insurance Scheme
  • Capital Markets Union Action Plan, including a reduction of capital charges for infrastructure investments
  • Securitisation proposal
  • Review of the Prospectus Directive

Read the press release ’18-month Programme of the EU Council for the Dutch, Slovak and Maltese Presidencies’