By Jean-Florent Richard (pictured) & Pilar de Terry – Next year sees the introduction of two major pieces of regulation both of which will have implications for how asset managers distribute their investment funds across Europe. Simply put, MiFID II will apply to investment firms manufacturing and/or distributing financial instruments while the PRIIPS regulation applies to all unit-linked funds, structured products and retail investment products.
Legal & Regulation
Luxembourg will always be a very heavily regulated jurisdiction. When the Alternative Investment Fund Managers Directive was introduced in 2011, the Grand Duchy was well prepared in advance of this new post-financial crisis environment of global regulation.
Rather than taking a short-term reactive approach to coping with regulatory change, and the inevitable reporting/data management task that comes with it, asset managers would be best advised to step back and think more long-term.
Although perceived as a very safe and conservative country, Luxembourg has embraced innovation in a number of ways that continue to set it apart from many of its competitors.
Linda Gibson, Director of Regulatory Change and Compliance Risk, BNY Mellon’s Pershing on teh challenge and opportunities of MiFID II…
Thirty seven per cent of organisations around the world still unsure whether they even need to comply with GDPR, says recent study
By George Ralph, RFA – A recent study by Watchguard Technologies of 1,600 organisations also found that only 10 per cent believed they were 100 per cent prepared for the regulations to pass into law. That’s 90 per cent who do not feel prepared, or are unsure if the regulations even apply to them.
With the implementation of AIFMD and UCITS V, the cost of launching EU funds has undoubtedly increased. Managers have to weigh up these costs versus the benefits of reaching a wider audience of European investors, compared to offshore funds. For those based in the UK, an added complication is Brexit.
New measures to update the merger system and better protect national security have been set out by UK Business and Energy Secretary Greg Clark.
The Alternative Investment Management Association (AIMA) has published a new edition of its flagship due diligence questionnaire (DDQ), 20 years after the first AIMA DDQ helped to standardise the due diligence process for alternative investment managers and investors.
By Nick Bayley (pictured), Duff & Phelps – With less than three months until the introduction of MiFID II, in some parts of the industry there is a palpable sense of panic as the deadline looms. Following the 20 September speech by FCA Enforcement chief Mark Steward, firms can take some comfort that the FCA will not immediately enforce MiFIDII in its entirety, provided firms can demonstrate that they have taken “sufficient steps to meet the new obligations”.