AMF: The AMF Implement Redemption Gates
October 6, 2022
The AMF Doc 2017-05 defines the procedure that Alternative Investment Fund Managers (AIFM) or Undertaking for Collective Investment in Transferable Securities (UCITS) managers must follow when implementing the liquidity management tool of redemption gates. Managers that intend to make use of gates must update their pre-contractual and contractual documents, the updated documents must be approved by AMF and the manager must then inform their clients accordingly, providing the investor with the ability to exit the fund prior to the implementation date.
The AMF also provides guidance on threshold setting, indicating that the gate threshold must be proportionate to the Net Asset Value frequency to maintain an acceptable level of redemptions for clients.
The AMF notes that when triggering a gate, managers have an obligation to inform the AMF and the affected clients as soon as possible.
Read the article here.
AFG: GECO and ROSA Databases
October 6, 2022
The AFG issued a reminder that the move from the GECO database to ROSA for financial products, initially scheduled for the end of 2022, has been postponed and should finally take place during Q3 2023.
AMF: Summary of AMF Spot Control Related to Entry into Relationship between an AMC and Depositaries
October 6, 2022
The AMF published a summary of the spot control conducted in 2022 on the topic of entry into relationship between asset management companies and fund depositaries. The aspects reviewed by the AMF covered:
- Organization and governance of the depositary activity
- Onboarding due diligence conducted on the AMCs
- Monitoring and control of AMCs
- Management of conflicts of interest and independence
- Systems and controls within the depositary bank
Read the article here.
AMF: AMF Has Updated Its Guidance on Management Fees for UCITS and Some AIFs
October 6, 2022
The maximum financial management fees and administrative management fees have historically been presented in the fund prospectus in two ways: either as a flat management fee covering the two types of fees or as two separate fees, admin fees on one side and management fees on the other.
The AMF is improving this regime to make the presentation of fees in prospectuses more flexible. In the pro forma prospectus, the list of fees displayed is no longer limitative and is renamed “operating fees and other services.” When setting out these fees, management companies can choose payments based on actual expenses or a predefined flat rate.
The requirement for specific information or a no-fee exit was waived to allow firms to adopt the new presentation, provided that the changes do not increase the total fees of the fund. Funds in existence on October 6, 2022, may choose to maintain the old fee structure.
Read the article here.
ESMA: ESMA Call for Evidence on SRD2
October 14, 2022
ESMA published a call for evidence addressed to persons and entities directly or indirectly impacted by the Shareholder Rights Directive II (SRD2), especially investors, issuers, intermediaries, proxy advisors and other entities. ESMA will consider the feedback received when preparing its input for the SRD2 review that will be delivered to the European Commission by July 2023.
Read the article here.
ESMA: ESMA Temporarily Amends Collateral Requirements
October 14, 2022
To address increasing pressure on liquidity, ESMA has decided to temporarily increase the eligible pool of collateral for a 12-month period to include the following as acceptable collateral:
- Uncollateralized bank guarantees (letter of credit in U.S.) for non-financial counterparties acting as clearing members
- Public guarantees for all types of counterparties
Public guarantees are those deemed to be issued by European Economic Area member states, the European Financial Stability Facility, the European Stability Mechanism, the European Union or a multilateral development bank, as listed under Article 117 of Regulation (EU) No. 575/2013.
Read the article here.
AFG: Accounting Body ANC No.2022-03 and ANC No.2020-07 Regulations Implementation Guide
October 14, 2022
The AFG published an implementation guide on accounting body l’Autorité des Normes Comptables “ANC” regulations numbers ANC No.2020-07 and ANC No.2022-03 related to annual financial statements covering the major changes and guidance for asset managers on changes in the presentation of their statements.
Read the article here.
AFG: UE 269/2014, Sanctions against Russian Depository
October 14, 2022
The AFG republished the note from the French Ministry of Economy and Finance dated October 13, 2022, and addressed to investment firms and asset managers. The note contained a reminder of the sanction against the Russian national settlement depositary as well as the consequences of the sanction and the January 7, 2023, deadline.
Read the article here.
AMF: The AMF and ACPR Report on Climate Commitments
October 25, 2022
The AMF and the ACPR reported on the monitoring and evaluation of the climate commitments of Paris market participants. The analysis focused on the governance of these commitments, the evaluation of the implementation of sectoral policies governing financing and investment in fossil fuels and estimates of the exposure of actors to these sectors.
Read the article here.
ESMA: ESMA Includes ESG Disclosures as a Strategic Priority
October 27, 2022
ESMA amends its Union Strategic Supervisory Priorities to include environmental, social and governance (ESG) disclosures alongside market data quality. The new priority of ESG disclosures replaces costs and performance for retail investment products and underlines the prominent role ESMA is giving to sustainable finance.
Read the article here.
ESMA: ESMA Publishes Statement on Common Enforcement Priorities
October 27, 2022
ESMA published a statement including recommendations to be considered by national regulators when they monitor and assess the 2022 annual financial reports of listed companies:
- Consistency between the information disclosed within the International Financial Reporting Standards (“IFRS”) financial statements and the nonfinancial information concerning climate-related matters, impact of climate risks in impairment of nonfinancial assets
- Enhanced transparency on the impacts of Russia’s invasion of Ukraine on issuers’ financial statements
- Reflection of the current macroeconomic environment in the IFRS statement
Read the article here.
Financial Services Compliance and Regulation
End-to-end governance, advisory and monitorship solutions to detect, mitigate, drive efficiencies and remediate operational, legal, compliance and regulatory risk.
Regulatory Advisory and Assurance Services
Within our Regulatory Advisory and Assurance Services, we assist financial services firms in a range of engagements across our suite of subject matter expertise.
