Regulatory notices

Yesterday, ESMA published two compliance tables on its website:
• Guidelines on certain aspects of the MiFID II suitability requirements (2023 revised version)
• Guidelines on certain aspects of the MiFID II appropriateness and execution only requirements

Most of the EU or EEA National Competent Authorities declared to comply with these guidelines or intend to comply with them. None of them rejected these principles.

On 6 October 2023, the Commission de Surveillance du Secteur Financer in Luxembourg communicated on the forthcoming webinar organised to inform the stakeholders on the possibility for alternative investment fund managers to submit their AIFM reporting through an API interface (S3 technology) as of 2 November 2023.

This webinar will take place on Wednesday 18 October 2023 from 3 to 4 pm to present the details of this new transmission solution.

On 3 October 2023, ESMA informed the public of the upcoming launch in 2024 of a Common Supervisory Action on MiFID II sustainability requirements with the National Competent Authorities.

According to the communication, the CSA will cover the following aspects:
• How firms collect information on their clients’ “sustainability preferences”;
• Which arrangements firms have put in place to understand and correctly categorise investment
• products with sustainability factors for the purpose of the suitability assessment;
• How firms ensure the suitability of an investment with respect to sustainability (including the use of a “portfolio approach”);
• How firms specify any sustainability-related objectives a product is compatible with as part of the target market assessment of the investment product.

Earlier this week, the Central Bank updated several forms used in the authorisation process of Irish UCITS and AIFs.

These forms are:
• UCITS Application Form Section 1 Information
• Qualifying AIF Application Form Sections 1 & 2
• Retail Investor AIF Application Form Section 1

Another form used to request the access to the ONR system within the application process of QIAIFs has been also amended:
• Qualifying Investor AIF (“QIAIF”) – The Central Bank of Ireland Portal Access Application Form

Last week, the Commission de Surveillance du Secteur Financier communicated on a new filing method made available to AIFMs for their Annex IV reporting.

From 2 November 2023, alternative investment fund managers will therefore be able to transmit their AIFM reporting through this new solution.

On 19 September 2023, the FCA communicates on the Temporary Marketing Period Regime for funds.

Background

Introduced by the FCA in the context of the Brexit, the TMPR allows certain EEA-based funds that were passporting into the UK at the end of the transition period to continue to be marketed in the UK in the same manner as they were before the transition period ended (again, subject to having notified to the FCA before the end of the transition period).

They can do this for a limited period while seeking UK recognition to continue to market in the UK. At launch of the TMPR, FCA announced it will contact firms with a landing slot for fund seeking recognition.

On 14 September 2023, the European Commission launched two consultations on the implementation of SFDR. A first consultation especially targets an audience familiar with this regulation and a second public consultation is aimed at a wider range of stakeholders.

These consultations are an important part of the assessment process of the implementation of this regulation and will be complemented by workshops and roundtables. This assessment intends to address the legal certainty, useability, and the capacity of the regulation to avoid greenwashing.

CSSF published yesterday the Circular 23/840 informing in-scope entities that it will apply the ESMA Guidelines on MiFID II product governance requirements as from 3 October 2023.

We have communicated extensively on the changes ESMA made on the Guidelines in a previous notification.

On 4 September 2023, the CSSF published an amended version of its standardised UCITS prospectus template.

We provide attached a track changes version together with the new template.