Regulatory notice

On 28 January 2022, the Financial and Capital Market Commission (FKTK) updated its internet website to comply with the Regulation (EU) 2021/955 on the cross-border distribution of funds.

The German financial market regulator updated its schedule of on the fees and charges levied by BaFin for carrying out its duties in relation to the cross-border activities of AIFMs, EuSEF managers, EuVECA managers and UCITS management companies referred to in Article 10(1) of Regulation (EU) 2019/1156 of the European Parliament and of the Council of 20 June 2019 on facilitating cross-border distribution of collective investment undertakings.

The ESMA launched last week a new consultation on amendment to its Guidelines on certain aspects of the MiFID II suitability requirements.

Three new elements have prompted the ESMA to review its guidelines initially introduced in 2018:

• the adoption by the European Commission of the changes to the MiFID II Delegated Regulation to integrate sustainability factors, risk and preferences into certain organisational requirements and operating conditions for investment firms;
• the results of the 2020 Common Supervisory Action (CSA) conducted by national competent authorities (NCAs) on the application of the MiFID II suitability requirements;
• the amendments introduced through the Capital Markets Recovery Package to Article 25(2) of MiFID II that adds a disclosure obligation for firms (i.e., to inform the clients) on the results of the analysis performed on the costs and benefits of switching investments when providing investment advice.

Last week, the European Insurance and Occupational Pensions Authority (EIOPA) launched a second consultation on the interest of the Pean European Pension Product (PEPP) 2 months ahead of the entry into force of this new Regulation.

The AMF just released an amended version of its doctrine (DOC-2020-03) on the information to be provided by collective investments funds integrating extra-financial approaches.

This updated version includes a new section 8 related to funds communicating on non-financial criteria that are exposed via derivative products and, in particular, via total return swaps (TRS) and states the Position no 9 applicable to these funds.

The CMVM has just published the information on marketing requirements and regulatory fees for the inward cross border marketing of UCITS and AIFs in Portugal.

The Banque de France updated again yesterday its technical documentation related to the implementation of its new reporting OPC2.

Yesterday, the “Conseil d’Etat” has examined the draft Law implementing the Directive (EU) 2021/2261 amending Directive 2009/65/EC as regards the use of KID by management companies of UCITS and the Regulation (EU) 2021/2259 of 15 December 2021 amending the PRIIPS Regulation as regards the extension of the transitional arrangement for management companies, investment companies and persons advising on, or selling, units of UCITS and non-UCITS (Regulation).

Yesterday, the CSSF published a Communiqué informing the public of the forthcoming launch of the Common Supervisory Action (CSA) on valuation of UCITS and open-ended AIFs (“CSA on valuation”). This announcement follows the ESMA communication on this topic released last week.

The CSA exercise led by the CSSF will focus on authorised investment fund managers of UCITS and open-ended AIFs investing in less liquid assets.