June 2015 - European fund industry news

The European fund industry in June

European supervisors consult on Key Information Documents

On 23 June, the three European supervisory authorities launched a consultation on risk, performance scenarios and cost disclosures for Key Information Documents (KIDs).

KIDs are part of the regulations for Packaged Retail and Insurance-based Investment Products (PRIIPs) which cover the range of investment products marketed to retail investors.

This latest consultation on KIDs, which follows one last November, will close on 17 August 2015.

IOSCO consults on standards on fund fees and expenses

On 24 June, the International Organization of Securities Commissions (IOSCO) published a consultation report on fees and expenses of funds sold to retail investors.

Entitled “Report on Elements of International Regulatory Standards on Fees and Expenses of Investment Funds” it examines and consults on issues identified as being key across jurisdictions.

The report proposes an updated set of common international standards of best practice for fund operators and regulators to consider and the consultation period ends on 23 September 2015.

Irish and Luxembourg FATCA delays

During the month, it was announced that the first deadline for FATCA reporting would be extended to 31 July in both Ireland and Luxembourg.

This is only an exceptional, administrative postponement for the first reports and the 2016 deadline should remain 30 June.

Fundsquare is a mandatory channel to transmit the FATCA reports for Luxembourg entities.

ESMA launches new strategy

The European Securities and Markets Authority (ESMA) published on 15 June its strategy for 2016 to 2020. Under its new strategy, ESMA’s focus will now shift from rulemaking towards the implementation of rules and ensuring the convergence of supervisory practices.

The strategy focuses on three key objectives:

• Investor protection
• Orderly markets
• Financial stability.

Steven Maijoor, ESMA chair, stated that “as the bulk of post-crisis rulemaking is now lying behind us, it is natural that the focus of ESMA’s works will change too. Ensuring that EU rules are implemented in a harmonised manner is the logical next step towards achieving a truly single market for financial services that serves investors, market participants and the economy at large.”

ALFI unveils 2020 ambition

On 17 July, ALFI, the Luxembourg fund association, outlined their goals for the coming years. Announced by the new ALFI chair, Denise Voss, the association’s 2020 Ambition contains five key objectives:

• Promote practices that align the interests of investors and industry
• Articulate the essential role of investment funds for the global economy
• Connect investors with worldwide market opportunities
• Ensure Luxembourg remains the fund centre of choice for asset managers
• Stimulate innovation, research, education and talent development.

IFIA rebrands as Irish Funds

On 11 June, Irish Funds Industry Association (IFIA) changed its name to “Irish Funds”.

Commenting on the rebranding, chief executive Pat Lardner said that “in a world of growing complexity and an ever-expanding range of acronyms and initialisations we wanted to emphasise what we represent in a clear and unambiguous way”.

ESMA updates and consultations

At the end of Junes ESMA published its final report on MiFID II-MiFIR draft technical standards  on authorisation, passporting, registration of third country firms and cooperation between authorities. The remaining draft technical standards ESMA is mandated to develop under MiFID II and MiFIR will be published by the end of 2015.

Also during the month, ESMA announced that it would postpone delivery of the draft technical standards for the central securities depositories regulation, originally planned for June, to September. On 30 June, the authority issued a second consultation paper on his regulation.

Other publications during the June included:

• Its 2014 annual report
• Guidelines on alternative performance measures for listed issuers

Ongoing consultations include those concerning the assessment of knowledge and competence and virtual currencies.

Fund industry publications in June

There were a number of significant publications during the month and these included:

• CACEIS and PwC Luxembourg released a report, on reshaping retail fund distribution
• PwC published a report entitled Alternative Asset Management 2020
• State Street released the results of it 2015 asset manager survey
• EY published the 2015 edition of its poster on global fund distribution and fund flows
• EFAMA published quarterly European fund statistics for the first quarter of 2015
• Deloitte issued a white paper on the impact of MiFID II on the fund distribution landscape
• The Alternative Investment Management Association (AIMA), published an updated edition of its due diligence questionnaire for pension funds and other investors to use when selecting a fund of hedge funds manager.
   

_{Published on: 1 July 2015}

Fundsquare News 21 - June 2015