Regulatory notices
On 21 April 2021, the European Commission disclosed its sustainable finance package including 2 Commission Directive Regulations related to the sustainability risks and sustainability factors to be taken into account for UCITS and AIFMs.
Yesterday the European Commission agreed on the Sustainable finance package in the context of the EC Green Deal plan and its objective to reach carbon neutrality by 2050. This agreement and its underlying texts aim to channel private money to finance this transition of the economy, to avoid the greenwashing in finance, to improve the well-being and health of citizens and protect, conserve and enhance the EU’s natural capital and biodiversity.
On 20 April 2021, the Financial Conduct Authority (FCA) published its annual consultation paper on periodic fees for 2021-2022.
Globally, FCA proposes a reduction of the periodic fees applicable to funds while AIF marketing notification fees increase by 2%.
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.