Selected UK and EU regulatory updates of interest to the funds and asset management sector. See also our Related Materials links for regulatory updates of broad application.
Following a seasonal break, the next update will be published on 19 April 2021.
The Bank of England (BoE) and the Financial Conduct Authority (FCA) have published a report on liquidity management in UK open-ended funds. The report contains findings of a joint survey launched in August 2020, covering a reporting period of Q4 2019 to Q2 2020, therefore incorporating market conditions triggered by the COVID-19 pandemic. The survey forms part of the ongoing joint review by the BoE and the FCA on open-ended funds liquidity mismatch.
The European Securities and Markets Authority (ESMA) has published a consultation paper on the legislative review of the EU Regulation on money market funds (MMF Regulation). Article 46 of the MMF Regulation requires the European Commission to review the adequacy of the Regulation "from a prudential and economic point of view". ESMA's consultation is the first step in developing an opinion on this review and includes a discussion about the key issues faced by MMFs during the COVID-19 pandemic, which saw a number of funds face significant liquidity issues.
The consultation closes to comments on 30 June 2021. ESMA will consider feedback received in Q2 2021 and plans to publish an opinion on the review of the MMF Regulation in the second half of 2021.
ESMA has published an updated version of its Q&As on the application of the Alternative Investment Fund Managers Directive (AIFMD) and its Q&As on the application of the UCITS Directive. ESMA has added two new Q&As in each on its guidelines on performance fees in UCITS and certain types of alternative investment funds (AIFs).
Authored by Yvonne Clapham
Download the full bulletin of regulatory news for financial institutions 1 April 2021
Financial institutions general regulatory news, 1 April 2021
Banking and finance regulatory news, 1 April 2021
Consumer finance regulatory news, 1 April 2021
Insurance regulatory news, 1 April 2021
Securities and markets regulatory news, 1 April 2021
Payments regulatory news, 1 April 2021
Are you sure want to delete comment ?
Scan this QR Code to share this content
