Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: Financial Markets

UK Private Fund Limited Partnerships

Posted in Financial Markets, UK Developments
HM Treasury has published a revised draft Legislative Reform Order (Order) on amendments to the Limited Partnership Act 1907 (Act), which was laid before parliament on January 16. The Order relates to the new private fund limited partnership (PFLP) structure. The PFLP is designed to reduce the administrative and financial burdens that impact funds under… Continue Reading

ESAs Publish Statement On Variation Margin Exchange

Posted in EU Developments, Financial Markets
On February 23, the European Supervisory Authorities (ESAs), which consist of the European Banking Authority, European Insurance and Occupational Pensions Authority, and the European Securities and Markets Authority, published a joint statement (Statement) in response to industry requests relating to operational challenges in meeting the deadline of March 1 for exchanging variation margin imposed by… Continue Reading

HM Treasury Publishes Response to the Transposition of MiFID II Consultation

Posted in Financial Markets, UK Developments
On February 9, HM Treasury published its response (Response) to the consultation that ran from March 27, 2015, to June 18, 2015, on the transposition of the revised Markets in Financial Instruments Directive (MiFID II) into UK domestic law. The Response summarizes responses submitted to the consultation by market participants, as well as the government’s… Continue Reading

ESMA Publishes Revised Draft ITS on MiFID II Position Reporting

Posted in EU Developments, Financial Markets
On February 9, the European Securities and Markets Authority (ESMA) published a revised draft implementing technical standards (ITS) on position reporting under the revised Markets in Financial Instruments Directive (MiFID II). The ITS were originally published in 2015. Since then, ESMA has identified a number of technical amendments necessary for the correct functioning of the… Continue Reading

ESMA Publishes Letter to the European Commission on Potential Exploitation of MiFID II Systematic Internalizer Regime

Posted in EU Developments, Financial Markets
On February 14, the European Securities and Markets Authority (ESMA) published a letter (Letter), dated February 1, to the European Commission (EC) in relation to the systematic internalizer (SI) regime under the revised Markets in Financial Instruments Directive (MiFID II) and the associated Markets in Financial Instruments Regulation (MiFIR).… Continue Reading

FCA Publishes Discussion Paper on Illiquid Investments and Open-Ended Funds

Posted in Financial Markets, UK Developments
On February 8, the UK Financial Conduct Authority (FCA) published a discussion paper (Paper), seeking stakeholder views on open-ended funds investing in illiquid assets. One of the difficulties highlighted in the Paper is the liquidity mismatch that is created when an investor wishes to withdraw its money on short notice, when illiquid assets cannot be… Continue Reading

ESMA Publishes Practical Guidance on EEA Major Holdings Notification Obligations

Posted in EU Developments, Financial Markets
On February 3, the European Securities and Markets Authority (ESMA) published a practical guide (Guide) to the national rules across the European Economic Area (EEA) on the implementation of the EU/EEA Transparency Directive’s requirements relating to major shareholding notifications (i.e., EEA long-position reporting requirements).… Continue Reading

ESMA Updates Q&As on MiFID II Transparency and Market Structure Topics

Posted in EU Developments, Financial Markets
On January 31, the European Securities and Markets Authority (ESMA) updated two Question and Answer (Q&A) documents on implementation issues relating to transparency and market structure under the revised Markets in Financial Instruments Directive (MiFID II) and the associated Markets in Financial Instruments Regulation (MiFIR).… Continue Reading

ESMA Issues Open Letter on EMIR Review and Sanctioning Powers to the EC

Posted in EU Developments, Financial Markets
On January 27, the European Securities and Markets Authority (ESMA) wrote an open letter (Letter) to the European Commission (EC) to ask it to consider a number of issues relating to its supervisory and sanctioning powers under the European Market Infrastructure Regulation (EMIR). This request is in the context of the ongoing review of EMIR… Continue Reading

FSB Publishes Policy Recommendations Relating to Asset Management Structural Vulnerabilities

Posted in Financial Markets
On January 12, the Financial Stability Board (FSB) published its policy recommendations (Recommendations) to address risks to global financial stability from structural vulnerabilities associated with asset management activities. The FSB consulted on its proposed recommendations in June 2016, and the FSB has incorporated responses to the consultation addressing specific structural vulnerabilities into the Recommendations. The… Continue Reading

ESMA Publishes Briefing on MiFID II Technical Data Reporting Requirements

Posted in EU Developments, Financial Markets
On January 13, the European Securities and Markets Authority (ESMA) published a briefing paper (Briefing Paper) summarizing technical data reporting requirements under the revised Markets in Financial Instruments Directive (MiFID II) and the associated Markets in Financial Instruments Regulation (MiFIR).… Continue Reading

UK Announces Brexit Negotiating Principles

Posted in Brexit, Brexit/UK Developments, UK Developments
On January 17, UK Prime Minister Theresa May laid out the UK government’s negotiating principles for the United Kingdom’s departure from the European Union, which heralds a new, more substantive phase of the Brexit process. The Prime Minister’s theme for the speech was the creation of a “stronger, fairer and global Britain” alongside a “new… Continue Reading

Law Society Publishes Response to Consultation on the Regulatory Perimeter

Posted in Brexit, Brexit/UK Developments, Financial Markets, UK Developments
On January 10, the Law Society of England & Wales (Law Society) published its response to HM Treasury’s September 2016 consultation (Consultation) on amending the definition of “financial advice” for the purposes of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO) (the UK legislation that defines which activities are regulated and with… Continue Reading

ESMA Publishes Follow-Up Report on Peer Review of Best Execution

Posted in EU Developments, Financial Markets, UK Developments
On January 11, the European Securities and Markets Authority (ESMA) published its follow-up report (Follow-Up Report) to its peer review on best execution of European Economic Area (EEA) national regulators. Best execution refers to the obligation under article 21 of the Markets in Financial Instruments Directive (MiFID) for investment firms to execute orders on terms… Continue Reading

UK FCA Confirms No Guidance to be Published on the Application of the UCITS Remuneration Code

Posted in EU Developments, Financial Markets, UK Developments
On November 17, the UK Financial Conduct Authority (FCA) updated its webpage focused on Undertakings for Collective Investment in Transferable Securities fund (UCITS) remuneration issues to confirm that it does not intend to publish any specific guidance on the application of the UCITS Remuneration Code. The FCA notes that UCITS management companies may wish to… Continue Reading

FCA Publishes Interim Report on Asset Management Market Study

Posted in Financial Markets, UK Developments
On November 18, the UK Financial Conduct Authority (FCA) published an interim report on its findings from an asset management market study (Report). The FCA launched the market study in November 2015, focusing on competition in the asset management industry and the ability of retail and institutional investors to get value for money when purchasing… Continue Reading

European Commission Adopts MiFID II Delegated Regulations

Posted in Derivatives, EU Developments, Financial Markets
On December 1, the European Commission adopted two delegated regulations (together, Delegated Regulations) to supplement the revised Markets in Financial Instruments Directive. The Delegated Regulations adopted include: regulation regarding the application of position limits to commodity derivatives, available here; and regulation pertaining to the criteria for establishing when an activity is considered to be ancillary… Continue Reading

EU Commission Publishes Roadmap of Proposal To Criminalize Money Laundering

Posted in EU Developments, Financial Markets
On October 25, the European Commission (Commission) published a roadmap (Roadmap) in relation to its proposal for an EU directive on the criminalization of money laundering. The Roadmap forms part of the Commission’s action plan (Action Plan) against terrorism financing, published in February 2016, and aims to introduce minimum rules for the definition of the… Continue Reading

Who Pays for MiFID II implementation in UK?

Posted in EU Developments, Financial Markets
On November 16, the UK Financial Conduct Authority (FCA) published a consultation (Consultation) on regulatory fees and levies, and its policy proposals for 2017/2018. The Consultation sets forth the FCA’s proposals on: 1) the structure of a new levy to fund action against illegal money lending; 2) the relevant groups (fee-blocks) of regulated firms from… Continue Reading

MiFIR Delegated Regulations Published in Official Journal of the EU

Posted in Derivatives, EU Developments, Financial Markets
On November 21, 2016, three delegated regulations (together, Delegated Regulations) made under the Markets in Financial Instruments Regulation were published in the Official Journal of the EU. The Delegated Regulations are: Delegated Regulation (EU) 2016/2020 on the criteria for determining whether derivatives subject to the clearing obligation should be subject to the trading obligation, available… Continue Reading

ESMA Publishes MAR Guidelines on Receiving Market Soundings

Posted in EU Developments, Financial Markets
On October 20, the European Securities and Markets Authority (ESMA) published guidelines (Guidelines) on receiving market soundings (also commonly known as being “wall crossed,”) under the EU Market Abuse Regulation (MAR). The Guidelines apply to EU regulators and persons receiving a market sounding (MSR) wherever in the world they are located. They seek to ensure… Continue Reading

ESMA Publishes MAR Guidelines for EU-Listed Issuers on Delaying Disclosure of Inside Information

Posted in EU Developments, Financial Markets
On October 20, the European Securities and Markets Authority (ESMA) published guidelines (Guidelines) on the scope of circumstances where an EU-listed issuer may delay disclosure of inside information, under the EU Market Abuse Regulation (MAR). The Guidelines apply to EU regulators and issuers of financial instruments admitted to trading on an EU trading venue (EU… Continue Reading

ESMA Publishes Guidelines on Remuneration Practices Under UCITS and AIFMD

Posted in EU Developments, Financial Markets
On October 14, the European Securities and Markets Authority (ESMA) published two sets of guidelines (Guidelines) on sound remuneration practices for EU managers of Undertakings for Collective Investment in Transferable Securities (UCITS) funds (UCITS Guidelines) and EU managers subject to the Alternative Investment Fund Manager (AIFM) Directive (AIFMD Amending Guidelines).… Continue Reading