In September, the legislative process for the UCITS V implementation law, which has been followed with great excitement on all sides, got moving again. It contains innovations for AIFs, including with regard to the granting of shareholder loans by closed-end AIFs to special purpose vehicles.
At the beginning of the month, there were difficulties in data transmission during the start of AIFMD reporting. In the meantime, BaFin has commented on how to deal with incomplete or late reports.
Progressive fund regulation is increasingly making itself felt in the U.S. as well. Recently, the SEC proposed a set of measures that would increase regulation of asset managers.
Also: EIOPA has published a Final Report on the identification and calibration of risk categories for infrastructure investments. The establishment of a new asset class for high-quality infrastructure investments under Solvency II is recommended.
We wish you a good end of the month.
With best regards
Dr. Ulrich Keunecke
On September 23, 2015, the German Federal Government adopted the draft law on the implementation of the UCITS Directive (UCITS V Implementation Act). The draft contains several changes compared to the draft bill of July 3, 2015, among others regarding the granting of shareholder loans by closed-end AIFs to special purpose vehicles. The draft has been forwarded to the Federal Council for comment, and the parliamentary procedure will begin in December.
The changes regarding the granting of shareholder loans relate to the following points:
According to EU requirements, the national implementation procedure must be completed by March 18, 2016.
At the beginning of AIFMD reporting, there are technical teething problems.
ESMA has analyzed the cause of the CAF-202 and CAF-008 error codes. The source of the error is expected to be fixed with the next release of the ESMA system. This release is expected to be available from September 18, 2015. Any files that have been rejected by ESMA under CAF-202 or CAF-008 must be re-posted to the production system.
Against the background of the abolition of the exemption amount regulation, BaFin has adjusted the reporting requirements for public real estate investment funds. Due to the current volume of funds, KVGs will only have to report to BaFin on a monthly basis (instead of daily) until further notice.
On September 22, 2015, the U.S. Securities and Exchange Commission (SEC) published a set of liquidity risk monitoring measures that are currently under consultation.
Accordingly, fund companies are to submit detailed plans for managing potential liquidity risks. In addition, an existing guideline on the cap on illiquid assets is to be adjusted and funds are to be allowed to use so-called “swing pricing”.
The SEC intends to stress test asset managers as well to uncover any systemic risks.
Please read the SEC’s press release dated September 22, 2015.
The European Securities and Markets Authority (ESMA) published the final technical standards on the revised Markets in Financial Instruments Directive (MiFID II), the Market Abuse Regulation (MAR) and the Central Securities Depository Regulation (CSDR) on September 29, 2015.
In the area of MiFID II, these are some of the significant new contents:
The technical standards on MAR strengthen the regulatory framework against market abuse. They contain prohibitions on insider trading and market manipulation.
The CSDR standards include organizational rules and conduct requirements for CSDs as well as a regulatory framework for settlement reporting.
The European Commission now has three months to approve the drafts.
EIOPA published the second set of Solvency II guidelines in all official EU languages on September 14, 2015. Within two months, national authorities can declare whether they will comply with these guidelines.
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