In particular in the case of netting, the existing EU framework on the commitment approach (mainly the CESR Guidelines and the AIFMD Delegated Regulation both of which with a granular approach) provides very useful criteria as to the measures for including netting at an aggregate level, which have been positively tested over years in practice with satisfactory results both for regulators and asset managers. number of reasons including connected world class research, pro-enterprise policy and an Requirement to consider sustainability risks in management companies or AIFMs : Requirement to maintain resources & expertise for the effective integration of sustainability risks, Requirement to integrate sustainability risks in the management of UCITS in a proportionate manner. Enabled by data and technology, our services and solutions provide trust through assurance and help clients transform, grow and operate. Quarterly indirect tax update August 2022. The Climate Financial Risk Forum published asecond set of guidesto help the financial industry effectively manage climate-related financial risks. Passionate about sustainability. The Delegated Regulation comes into force on 12 April 2016 and will apply from 13 October 2016. The assessment details why a particular advice or decision is suitable for the client and how it will allow the client to achieve their investment objectives. At Grant Thornton we meet the challenges of our clients. All Rights Reserved. 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, Luxembourg Newsflash - Level 2 measures for UCITS V: an overview, Administrative Law, Property, Construction & Environment, Financial Reporting and Accounting Standards, Fund distribution & cross-border activities, Business development, Marketing and Communication, CSSF press release 14/02 on the enforcement of the 2013 financial information prepared by issuers of securities subject to the Transparency Law - Newsflash - 9.01.2014, CSSF-authorised funds must file SFDR-imposed prospectus updates by 31 October 2022. Data Protection Regulation means Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation); AIFM Regulation means Commission Delegated Regulation (EU) No. Prospectus Regulation means Regulation (EU) 2017/1129. Accessibility Standards means accessibility standards and specifications for Texas agency and institution of higher education websites and EIR set forth in 1 TAC Chapter 206 and/or Chapter 213. Changes to the Outsourcing legislation, specifically when offshoring. Q1 2022: A consultation on climate change mitigation and climate change adaptation criteria under the UK green taxonomy will be published. Cybersecurity, strategy, risk, compliance and resilience, Value creation, preservation and recovery, Climate change and sustainability services, Strategy, transaction and transformation consulting, How a collaborative approach helps CGT treatments reach more patients, How blockchain is reducing the fluidity of risk in marine insurance, How the right conversations can empower finance transformation strategies. Regulation T, U or X means Regulation T, U or X, respectively, of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor to all or a portion thereof. Grant Thornton Ireland is a member firm of Grant Thornton International Ltd (GTIL). Council Regulation means Council Regulation (EC) No. We previously referred to these measures in our April 2021 briefing on the wider EU Sustainable Finance Package as it affects asset managers and large portfolio companies and, before that, in the Sustainability section of our 2021 New Year Briefing. Section 76.1 et seq. 231/2013 of 19 December 2012. These measures comprise of the gross method as set out in Article 7 of the AIFMD Delegated Regulation and the commitment method as set out in Article 8 of the AIFMD Delegated Regulationuntil June 2023 which would allow most legacy USD LIBOR contracts to mature before the relevant LIBOR rate ceases to be calculated. The following legislation will be amended due to the ESG proposals: The Delegated Acts suggest an amended approach to existing organisational/governance and conduct of business requirements. In the EU the AIFMD Delegated Regulation includes conversion methodologies for derivative instruments for the calculation of the exposure of an AIF in accordance with the gross method, including delta adjustments for options, to avoid overstate the market risk of funds. ACCA. All the Delegated Regulations and Directive will enter into force on 22 August 2021 and will all apply from 2 August 2022. Loss of financial instruments and liability discharge (Articles 18 and 19).The Delegated Regulation specifies the conditions and circumstances under which financial instruments held in custody are considered to be lost and how the depositary can escape its liability in case of a force majeure event. Select your location Close country language switcher, EY Luxembourg Partner, Sustainability Leader. The Financial Stability Board published aprogress reporton the regulation, supervision and oversight of global stablecoin arrangements. Being well-prepared for an audit is an efficient audit. The practical reach of the rules in terms of organisation, governance, policies, and operational procedures will need to be proportionate to strategic choices and size (in terms of consideration of principal adverse impacts of investment decisions) as well as the extent to which the investment funds managed by the IFM pursue sustainability-related objectives or promote environmental or social characteristics. The European Commission published ajoint statementby members of the EU-US Financial Regulatory Forum following a meeting held on 29 and 30 September 2021. ECB publishes consultation response to the EFRAGs public consultation on the first set of draft European Sustainability Reporting Standards. GTIL does not provide services to clients. Promote economic activities that will contribute towards climate change mitigation. Requirement to ensure that senior management of the management company is responsible to take sustainability risks into account in: Requirement to ensure that senior management of the AIFM is responsible to take sustainability risks into account in: Requirement to identify conflicts of interest arising from the integration of sustainability risks in processes, systems and controls, Consideration of sustainability risks and, where applicable, principal adverse impacts of investment decisions on sustainability factors when applying investment due diligence requirements, Requirement to consider sustainability risks in the risk management policy. 2022 Grant Thornton Ireland. The insights and services we provide help to create long-term value for clients, people and society, and to build trust in the capital markets. Our Business Process Outsourcing (BPO) model is tailored for growing multinational companies to support the transition and transformation of finance functions and business growth. You may withdraw your consent to cookies at any time once you have entered the website through a link in the privacy policy, which you can find at the bottom of each page on the website. 2015/35). The delegated act places an obligation on investment firms to review and update their suitability assessment processes and ensure consideration is given to clients sustainability preferences. The text of the Delegated Regulation as published does not depart from the text adopted by the European Commission on 17 December 2015. delegated mifid aifmd publishes regulation However, the assessments do not take into consideration the clients sustainability preferences and whether they wish to integrate environmentally friendly financial instruments into their portfolio. Draft UCITS delegated directive as regards the sustainability risks and sustainability factors to be taken into account for Undertakings for Collective Investment in Transferable Securities, Draft AIFMD delegated regulation as regards sustainability risks and sustainability factors to be taken into account by Alternative Investment Fund Managers, Draft MiFID delegated directive as regards the integration of sustainability factors and preferences into the product governance obligations, Draft MiFID delegated regulation as regards the integration of sustainability factors, risks and preferences into certain organisational requirements and operating conditions for investment firms. Directive 2009/138/EC - Solvency II Directive, Copyright 2006 - 2022 Law Business Research. On 24 March 2016, the European Commission Delegated Regulation EU 2016/438 (the Delegated Regulation) supplementing the UCITS V Directive with regard to obligations of depositaries was published in the Official Journal of the European Union. Regulation T, U or X" means Regulation T, U or X, respectively, of the Board of Governors of the Federal Reserve System as from time to time in effect and any successor to all or a portion thereof. AIFM & Fund Administration. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. The Taxonomy Climate Delegated Act will now be examined by the Council of the EU. All Rights Reserved. The FCA published apress releaseannouncing the publication of final rules and related material relating to its first two policy statements on the Investment Firms Prudential Regime (IFPR). On 24 March 2016, the European Commission Delegated Regulation EU 2016/438 (the Delegated Regulation) supplementing the UCITS V Directive with regard to obligations of depositaries was published in the Official Journal of the European Union. Services are delivered by the member firms. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one anothers acts or omissions. Firms must consider sustainability risks and impacts of investment decisions on sustainability factors when performing due diligence. The BoE published thefinancial policy summary and recordof the meeting of its Financial Policy Committee. European Securities and Markets Authority (ESMA) published astatementon making investment recommendations on social media. This update focuses on the financial services aspects of the programme. 44/2001 of 22 December 20001 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters; Federal Regulations means those federal regulations relating to cable television services, 47 C.F.R. Investment firms will be required to integrate investors sustainability preferences, i.e. The Delegated Acts were developed following public consultation work carried out in 2018 and ESMAs final report published in April 2019. Authorised by Chartered Accountants Ireland (CAI) to carry on investment business. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Alignment of definition of sustainability risks with SFDR. The Association for Financial Markets in Europe (AFME) published apaperon firms' monitoring of financial transactions for suspicion of money laundering (commonly known as anti-money laundering transaction monitoring). Most comprehensive library of legal defined terms on your mobile device, All contents of the lawinsider.com excluding publicly sourced documents are Copyright 2013-. Ensure financial services and capital are reoriented towards sustainable investments; and. Understand your clients strategies and the most pressing issues they are facing. Consideration should also be given notably to the legislation applicable to benchmark administrators, investee companies and distributors or advisors in order to set up appropriate communication and data flows. EU Regulation means a regulation within the meaning of Article 288 of the Treaty on the Functioning of the European Union; General Regulations 2007 means The Civil Enforcement of Parking Contraventions (England) General Regulations 2007; Solvency II Regulation means Commission Delegated Regulation ((EU No. Keep a step ahead of your key competitors and benchmark against them. Norton Rose Fulbrights Financial services: Norton Rose Fulbright, LLP 2022. To ensure that the submitted documents can be reviewed in good time, the CSSF expects UCITS and CSSF-authorised AIFs that are still fundraising to file by 31 October We regularly issue Newsflashes on new laws, bills of law and on-going developments, to alertyou on important new legal matters, Follow us on social media to keep up with our latest legal and business updates. With CAF as GEF Agency, this project will be executed by the Massachusetts Institute of Technology (MIT) in collaboration with Colombian public and private sector partners at national and local levels. 231/2013. The Prudential Regulation Authority (PRA) published areporton climate-related financial risk management and the role of capital requirements. Tell us who you are to view our scope of services, adapted to your profile and your sector of activity. SEBI Regulations means the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 together with the circulars issued thereunder, including any statutory modification(s) or re-enactment(s) thereof for the time being in force. Depositaries of UCITS and AIFs have until 1 April 2020 to comply with new rules on safekeeping duties following the publication of: (1) Commission Delegated Regulation (EU) 2018/1618 amending Delegated Regulation (EU) 231/2013 (the "AIFMD Delegated Regulation"); and (ii) Commission Delegated Regulation (EU) 2018/1619 amending Delegated Regulation (EU) 2016/438 (the "UCITS Delegated Regulation") (together the "Delegated Regulations"). Section 76.3), or as such regulations may be amended. TUPE Regulations means the Transfer of Undertakings (Protection of Employment) Regulations 2006, as amended. EY is a global leader in assurance, consulting, strategy and transactions, and tax services. The Financial Stability Board (FSB) published aspeechby the FSB Chair, that among other things, considers how the FSB will address ongoing and future financial stability challenges in 2022 and beyond. However, some minimum standards stemming from upcoming UCITS Directive, AIFMD and SFDR rules will also be applicable to fund managers who do not consider principal adverse impacts and do not manage light green or dark green products. Considering the guidance provided earlier this year by ESMA, as published on 1 February 2016 in its UCITS Q&A, the revision of the depositary agreements should be finalised promptly and in accordance with the requirements outlined in the Delegated Regulation once the Luxembourg legislator has adopted the law implementing Directive UCITS V. According to our latest information, the respective parliamentary vote should take place in April 2016. In the EU the AIFMD Delegated Regulation includes conversion methodologies for derivative instruments for the calculation of the exposure of an AIF in accordance with the gross method9, including delta adjustments for options, to avoid overstate the market risk of funds. A detailed disclosure should be provided to clients outlining the reasons for recommending an investment strategy and how it meets clients objectives and sustainability preferences. The below table outlines the type of business activity the new requirements are applicable to: Firms that are in scope of the AIFMD, UCITS and MiFID regimes need to become familiar with the changes that are applicable to their business activity and analyse how they will comply with the new obligations. dufas The European Supervisory Authorities (that is, the EBA, EIOPA and ESMA) published ajoint final report(JC 2021 50) on draft regulatory technical standards (amending RTS) regarding the content and presentation of sustainability disclosures under Articles 8(4), 9(6) and 11(5) of the Sustainable Finance Disclosure Regulation ((EU) 2019/2088) (SFDR). Without limiting the generality of the foregoing, Basel III Regulation shall include Part 6 of the European Union regulation 575/2013 on prudential requirements for credit institutions and investment firms (the CRR) and any law, regulation, standard, guideline, directive or other publication supplementing or otherwise modifying the CRR. The European Banking Authority (EBA) published itsfinal report(EBA/RTS/2021/08) on draft regulatory technical standards on the disclosure of the investment policy by investment firms under the Investment Firms Regulation ((EU) 2019/2033) (IFR). The links to the various amending measures are below: Legislation amending Solvency II and the Insurance Distribution Directive was also published. Firms will need to update their existing conflicts of interest identification process to include conflicts of interest that may arise as a result of integration of sustainability risks into the organisational arrangements. The International Capital Market Association published an updated version of itsguideto reporting repo transactions under both the EU and UK versions of the Regulation on reporting and transparency of securities financing transactions (SFTR). The European Commission published acommunicationoutlining its work programme for 2022. Commission Delegated Regulation (EU) 2021/1833supplementing the MiFID II Directive (2014/65/EU) by specifying the criteria for establishing when an activity is to be considered to be ancillary to the main business at group level was published. CSD Regulations means the CSDs rules and regulations applicable to the Issuer, the Agent and the Notes from time to time. . The changes require senior management to be responsible for the integration of sustainability risks. Implementing Regulation means the Regulation (EEC) No 574/72 of the Council laying down the procedure for implementing Regulation (EEC) No 1408/71 on the application of social security schemes to employed persons, to self-employed persons and to their families moving within the Community and includes amendments and adaptations from time to time applicable thereto;. Firms are required to retain the necessary resources and expertise in order to effectively integrate sustainability risks. Some information about timing and future consultations is set out in the paper, including: The European Parliament's Economic and Monetary Affairs Committee published draft reports on theuse of KIDs under the PRIIPS Regulation(EU/1286/2014) andamendments of the UCITS Directive(2009/65/EC). In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. For more information about our organization, please visit ey.com. In recent years Ireland has become an epicentre for Foreign Direct Investment (FDI) for a These conditions are the same as those applicable under AIFMD. HM Treasury published aconsultation paperon regulating interest free buy-now-pay-later credit products. The Network for Greening the Financial System (NGFS) published aninterim reporton biodiversity and financial stability. GTIL and each member firm is a separate legal entity. IFMs should conduct their analysis jointly with the project carried out to reach compliance with the SFDR and the Taxonomy. Obligations of the depositary (Articles 3 to 17).Further details are provided in the Delegated Regulation relating to oversight duties, cash monitoring, safekeeping duties with regard to assets held in custody and other assets, due diligence when selecting and appointing third parties, segregation and insolvency protection of UCITS assets when delegating custody functions. For full functionality of this site it is necessary to enable JavaScript. The long-awaited so-called level 2 measures for Directive 2014/91/EU of 23 July 2014 as regards depositary functions, remuneration policies and sanctions (Directive UCITS V) provide for the following: Written contract appointing the depositary (Article 2).The Delegated Regulation sets out the minimum requirements for the written agreement to be entered into between the investment company or the management company for each of the common funds that the management company manages on the one hand and the depositary on the other hand.

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