Regulatory notice

Last week, the European Securities Market Authority published its annual report on Performance and Costs of EU Retail Investment Products. This ESMA Annual Statistical Report 2021 provides an overview of EU retail investment products from 2010 to 2019.

Beginning of April, the Central Bank of Ireland published a Consultation Paper on Cross Industry Guidance on Operational Resilience (CP 140). The Central Bank has addressed this Consultation to all regulated financial service providers, as defined in Section 2 of the Central Bank Act 1942 meaning that fund service providers (UCITS managers and AIF Managers) as well as intermediaries and branches of third-country investment firms are in the scope of the future guidance, object of the consultation.

On 6 April 2021, the Luxembourg Government deposited an amendment to the Bill transposing the directives related to the facilitating of the cross-border distribution of funds and modifying the UCI Law 2010 and AIFM Law 2013 initially deposited in December 2020.

On April 1st, 2021, the Central Bank of Ireland issued the 38th edition of the Central Bank AIFMD Q&A, which includes two new Q&As on AIF shareholder loan and transactions with AIF investors.

Yesterday 1st of April, The Central Bank of Ireland published its new Central Bank performance fee guidance for UCITS and certain types of Retail Investor AIF as well as its related feedback statement on the Consultation Paper. This new guidance implements the eponym ESMA guidelines published earlier in November 2020.

Yesterday 30 March 2021, The ESMA updated its Q&A on application of UCITS and the Q&A on application of AIFMD.

A new section related to the ESMA’s guidelines on performance fees in UCITS and certain types of AIFs in both documents.

On 29 March 2021, the ESMA updated its Q&A on MiFID II and MiFIR investor protection and intermediaries’ topics by added a question related to the inducements.

The question (p. 111) relates to the level of proportional inducement received justified by the provision of an additional or higher-level service quality to the relevant clients.

Recently, the Joint Committee of the European Supervisory Authorities published a consultation paper on the Taxonomy-related sustainability disclosures amending the draft regulatory technical standards about the content and presentation of sustainability disclosures pursuant to Article 8(4), 9(6) and 11(5) of Regulation (EU) 2019/2088 recently submitted to the European Commission.

Yesterday, ESMA published its result of its Common Supervisory Action led in the second half of 2020 within 30 countries in Europe.

The objective of this CSA was to assess whether UCITS managers comply with their liquidity management obligations and for NCA to collect and exchange knowledge and get experience between them. In conclusion of this exercise, ESMA will carry out further work to promote convergence in the way NCAs follow-up on the supervisory findings made during the CSA. CSA themselves will undertake follow-up actions on individual cases to ensure that regulatory breaches as well as weaknesses identified are remedied.