December 2014 - European fund industry news

European fund industry review

ESMA provides implementing rules for MiFID II

On 19 December, the European Securities and Markets Authority (ESMA) published its final technical advice on the implementation of the Markets in Financial Instruments Directive (MiFID II) and the MiFIR regulation.

It also launched a second round of consultation on its draft regulatory technical and implementing standards. This consultation closes on 2 March 2015.

Totaling some 1,600 pages, the technical advice and the draft regulatory technical standards translate the MiFID II/MiFIR requirements into practically applicable rules for market participants and national supervisors.

An all-encompassing regulatory framework that touches on other directives and laws, MiFID II/MiFIR aims at ensuring that secondary markets are fair, transparent and safe and that investors’ interests are safeguarded when being sold investment products.

Apart from the numerous rules relating to markets and trading, MiFID II will impact investment funds through its provisions concerning governance, remuneration, inducements, stronger investor protection and the labelling of certain funds as "complex".

During 2015, and following closure of all consultations, the implementing measures should be finalised and transposition of the directive by all member states into national law should take place in the second half of 2016.

European fund assets pass 11 trillion euros

At the end of November, EFAMA, the European Fund and Asset Management Association released its quarterly statistical update and reported that the combined assets of the investment fund market in Europe surpassed the EUR 11 trillion mark for the first time during the third quarter of 2014. At the end September 2014, total assets of the European investment fund industry stood at EUR 11,057 billion, representing growth of 12.9 percent since end of 2013.

Up to September of this year, UCITS funds attracted EUR 405 billion in net inflows, more than double the EUR 178 billion attracted over the same period in 2013. UCITS accounted for 71% of the European investment fund market.

ESMA busy in December

ESMA was very active in December with a flurry of papers released that included:

• An opinion paper and advice on investment-based crowdfunding
• The draft implementing technical standards under the Capital Requirements Regulation
• Three consultations on proposed technical standards, technical advice and guidelines implementing the Central Securities Depositories Regulation
• A consultation paper on the AIFMD asset segregation requirements. 

European long-term investment funds: Council confirms agreement with Parliament

On 10 December, the European Council issued a press release  stating that a compromise had been agreed with the European Parliament on a new form of fund vehicle: the  European long-term investment fund, or ELTIFs

ELTIFs aim at increasing the pool of capital available for long-term investment and are expected to be able to provide investors with long-term, stable returns

Only EU alternative investment funds that are managed by managers who are authorised as AIFMs are eligible to market themselves as ELTIFs.

Fund industry publications in December

Publications of note during the month included:

• AFG, the French asset management association released its first study of real estate funds (OPCI) in France
• KPMG published its annual report on tax rates applying to Luxembourg SICAVs and FCPs covering 82 countries 
• The Luxembourg fund association, ALFI, issued three podcasts, on real estate, private equity and hedge funds, from the previous month’s Alternative Investment Funds conference, covering the latest trends.

_{Published on: 22 December 2014}

Fundsquare News 15 - December 2014