July 2014 - European fund industry news

The fund industry in July

End of the one-year transitional period for alternative fund managers

22 July was a significant date for Europe’s alternative investment fund managers, this being the deadline by which they should have been authorised or registered as such under the AIFMD. 

Figures on this date show the vast majority had done so although some authorisations were ongoing and ready for “imminent approval”. The CSSF, the Luxembourg supervisor, reported that it had received 773 applications. Of these, 215 were for authorisations (with 151 approved) and 558 were requests for registrations.

The latest available numbers at 28 July indicated that for Ireland, the UK, Luxembourg and France, more than 2,300 applications were received in total, with around 45% of these in the UK .

Just before 22 July, ESMA, the European Securities and Markets Authority, updated its Q&A on the application of the AIFMD, mainly with new reporting and depositary questions. The CSSF also issued version seven of its FAQ on this subject.

CSSF publishes circular ahead of UCITS V

On 11 July, the CSSF, the Luxembourg supervisor, issued circular 14/587 on provisions applicable to UCITS depositaries.

The circular is, to some extent, based on the rules set out in the AIFMD and anticipates the alignment of AIF and UCITS requirements such as those of the UCITS V directive.

Concerning the UCITS V directive, this was formally adopted by the European Council in July and the final text is expected to be published in the official journal of the European Union in the coming weeks.

Luxembourg credit institutions and UCITS have until 31 December 2015 to comply with the requirements of the CSSF circular, subject to other transitional provisions that might become applicable once the UCITS V Directive is implemented.

Luxembourg fund industry strengthens ties with China

At the end of June, the fund associations of China and Luxembourg signed a memorandum of understanding.

Signed between Luxembourg’s ALFI and AMAC, the Asset Management Association of China, the agreement focusses on developing activities to create opportunities for the fund industries in both countries.

Sun Jie, the chairman of AMAC, commented at the signing that the agreement was “a win-win for both industry associations” and that it would “ensure that the asset management industry in China has world-class standards.”

AMAC also signed another memorandum of understanding in June with the Alternative Investment Management Association, AIMA.

Fund industry publications in July

During July, publications of note came from:

• ESMA, who released the audio recordings of the MiFID II public hearings on markets and investor protection issues, as well as a guide for retail investors concerning improved investor protection under the directive 
• The European Fund and Asset Management Association, EFAMA,  with its 2014 annual asset mangement report and its international fund statisics for the first quarter of 2014
• The German fund association, who published its annual yearbook
• EY, who released the findings of a survey on global regulated funds 
• And finally, IOSCO, the International Organization of Securities Commissions, issued a document entitled Report on the IOSCO Social Media and Automation of Advice Tools Surveys.
  

_{Published on: 30 July 2014}

Fundsquare News 12 - July 2014