Welcome to the latest edition of our investment management update.
This publication has been tailored to highlight topical news, cases and changes in the law impacting the investment management sector.
UK
- On 31 July 2024, the FCA published a speech by Sheldon Mills,
the FCA Executive Director of Consumers and Competition, on the
Consumer Duty which discussed its impact to date and areas for
improvement.
Taking the leap on the Consumer Duty | FCA
- On 29 July 2024, the FCA published a Call for Input asking
firms for views on simplifying the FCA's retail conduct rules
and guidance to address potential areas of overlap with the
Consumer Duty. The FCA is requesting to hear from firms, industry
bodies and consumers. The Call for Input closes on 31 October
2024.
Review of FCA requirements following the introduction of the Consumer Duty | FCA
Financial regulator seeks to reduce burdens on firms and support growth | FCA
- On 26 July 2024, the FCA published a policy statement (PS24/9)
setting out new rules on payment optionality for investment
research. The policy statement follows the feedback to the
FCA's consultation paper on paying for investment research
(CP24/7) and sets out a new payment option, which allows the
'bundling' of payments for third-party research and trade
execution services which came into force on 1 August 2024.
PS24/9: Payment optionality for investment research
- On 26 July 2024, the FCA published a consultation paper on the
derivatives trading obligation and post-trade risk reduction
services (CP24/14). The deadline for responses to the consultation
paper is 30 September 2024.
CP24/14: Consultation on the derivatives trading obligation and post-trade risk reduction services
- On 26 July 2024, the FCA published a package of proposed
measures designed to help strengthen the UK's capital markets.
The key measures are set out in the FCA's consultation paper on
the new Public Offers and Admission to Trading Regulations regime
(CP24/12) which would replace the UK Prospectus Regulation, and a
consultation paper on the new public offer platform regime
(CP24/13). The deadline for responses to both consultation papers
is 18 October 2024.
FCA sets out rules and proposals to build up UK wholesale markets | FCA
CP24/12: Consultation on the new Public Offers and Admission to Trading Regulations regime (POATRs) | FCA
CP24/13: New regime for public offer platforms | FCA
- On 18 July 2024, the FCA published its findings from a
multi-firm review of how effectively firms are following current
FCA guidance on the treatment of PEPs for anti-money laundering
purposes (the Guidance). The FCA has also launched a consultation
on proposed clarifications to the Guidance (GC24/4) in connection
with its review. The deadline for responses is 18 October
2024.
The treatment of politically exposed persons | FCA
GC24/4: Proposed amendments to Guidance on the treatment of politically exposed persons | FCA
- On 17 July 2024, the FCA published a policy statement on
implementing the Overseas Funds Regime (OFR) (PS24/7) which
provides feedback to the FCA's consultation paper CP23/26 and
sets out the final rules and guidance required to implement the
OFR. For a summary, read our short note.
PS24/7: Implementing the Overseas Funds Regime: Feedback to CP23/26 and final rules
- On 17 July 2024, the King's Speech was delivered to
Parliament, setting out the government's legislative programme.
The Government also published background briefing notes which
provide a summary of the legislation to be brought forward which
includes the Bank Resolution (Recapitalisation) Bill, Pension
Schemes Bill, Digital Information and Smart Data Bill and Cyber
Security and Resilience Bill.
Macfarlanes representatives David Gauke, head of public policy, and Michael Sholem, financial services regulation partner, discussed the King's Speech with The Investment Association in a webinar.
IA Webinar - UK General Election Series - Session Two | Events | The Investment Association
The King's Speech 2024 - GOV.UK
The King's Speech 2024 - Final
- On 12 July 2024, BoE and FCA published a webpage setting out
Q&As on the revised reporting requirements under Article 9 of
the UK EMIR. The Q&As provide guidance on the arrangements for
transitioning to the updated derivative reporting framework under
UK EMIR during the transition period from 30 September 2024 to 31
March 2025.
UK EMIR Reporting Q&As (applicable from 30 September 2024) | Bank of England
- On 11 July 2024, the FCA published a Policy Statement on its
Primary Markets Effectiveness Review (PS24/6) which responds to
CP23/31 and sets out the amended Listing Rules. The new rules
became effective on 29 July 2024.
PS24/6: Primary Markets Effectiveness Review: Feedback to CP23/31 and final UK Listing Rules
- On 8 July 2024, the FCA published its Quarterly Consultation
Paper No. 44 setting out proposed miscellaneous amendments to the
FCA Handbook. In particular, the FCA are consulting on proposals to
apply the UCITS concentration rules to umbrella UCITS schemes at
the sub-fund level rather than the umbrella level, and to clarify
the level of a Collective Investment Scheme to which COLL
5.2.29R(3) applies.
CP24/11: Quarterly Consultation Paper No. 44
- On 5 July 2024, the FCA updated its webpage on the OFR to
include information on landing slots for fund operators in the
temporary marketing permissions regime (TMPR). Furthermore, on 19
July 2024, the FCA further updated its webpage to provide details
about the operational impact for operators of funds in the TMPR,
highlighting the importance of fund population data being accurate
and stable at the beginning of the landing slot window.
Overseas Funds Regime: Update for firms | FCA
Europe ex UK
- On 25 July 2024, the Joint Committee of the European
Supervisory Authorities published its final report (JC 2024 53) on
draft regulatory technical standards to specify the elements a
financial entity needs to determine and assess when sub-contracting
ICT services supporting critical or important functions as mandated
by the Regulation on digital operational resilience for the
financial sector ((EU) 2022/2554) (DORA).
Final report on Draft Regulatory Technical Standards
- On 22 July 2024, ESMA published a statement on the transition
to the new designated publishing entity (DPE) regime for publishing
OTC-transactions for post-trade transparency in light of MiFIR II
((EU) 2024/791). To affect the new rules, ESMA will start
publishing the DPE register on 29 September 2024, and the new DPE
regime for post-trade transparency will have full effect from 3
February 2025.
ESMA Public Statement on The Transition to the new regime for post-trade transparency of OTC-transactions
- On 8 July 2024, ESMA published a consultation paper on draft
regulatory technical standards (RTS) on liquidity management tools
(LMTs) under the Directive amending the Alternative Investment Fund
Managers Directive (2011/61/EU) (AIFMD) and the UCITS Directive
(2009/65/EC) ((EU) 2024/927) (AIFMD II), and a consultation paper
on guidelines on LMTs of UCITS and open-ended AIFs which will
provide guidance on how managers should select and calibrate LMTs
in light of their investment strategy, their liquidity profile and
the redemption policy of the fund.
ESMA Consultation Paper on LMTs under AIFMD and UCITS Directive
ESMA Consultation Paper on the Guidelines on LMTs of UCITS and open-ended AIFs
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.