Data Management Insights

Asset Managers can now access a finalised version of the PRIIPS Key Information Document (KID), almost 2 years after the European Supervisory Authorities (ESAs) started consultations on how the PRIIPS KID should be amended.  The EC has published a couple of days ago a delegated legal act and a A 46-page annex, amending the regulatory technical standards laid down in the Commission Delegated Regulation (EU) 2017/653. This addresses the underpinning methodology and presentation of performance scenarios, the presentation of costs and the methodology for the calculation of summary cost indicators, the presentation and content of information on past performance and the presentation of costs by packaged retail [...]

In June this year, the UK Government published a report by the Taskforce on Innovation, Growth, and Regulatory Reform to pinpoint potential areas of regulatory reform. The idea behind generating this report was clear; the UK needs to find new ways of refreshing its approach to regulation now that they have left the EU. The UK must take advantage of their newfound regulatory freedom as well as providing support for innovation, and growth. The Taskforce on Innovation, Growth and Regulatory Reform organised dozens of roundtables and meetings with over 125 experts including entrepreneurs, businesses, trade bodies, academics, Think Tanks, and others who shared their insights and ideas. [...]

The EU Directive and Regulation,  known as the “CBDF package”, or “the EU cross-border distribution of collective investment undertakings legislative package” was officially launched in July 2019. The Directive will impact all UCITS and Alternative Investment Funds (AIFs). It will come into effect on 2nd August 2021.  The impetus behind the introduction of this new directive was the discovery, by the  European Parliament, that the majority of investment funds were only registered for sale in their local markets. On top of that, only 37% of UCITS funds and 3% of AIFs were registered for distribution in more than three EU member states. The CBDF will seek to [...]

After much anticipation, the FCA published its consultation (CP21/17) on climate-related financial disclosures and rules for UK asset managers at the end of June. Objectives include increasing transparency and competition as well as stimulating the flow of capital towards firms that are better managers of climate risks and opportunities. The FCA will ensure that the new requirements are in line with existing UK and international disclosure regimes, but firms operating cross-border in the EU will have to do an additional element of reporting. Who is in-scope of CP21/17  Firms managing investments and giving investment advice Certain life insurers and FCA-regulated pension providers referred to as ‘asset [...]

At the beginning of the year, the FCA reported that, of the 145 money managers in the UK, almost half failed to disclose their costs associated with individual funds in compliance with the FCA’s criteria. According to the FCA in their early July announcement, firms are still failing to assess whether their fund fees are justified by the value they give to investors. The FCA also points to the fact that some fund managers did not meet reporting standards. The major issue here lay in incomplete assessments, lack of performance details, costs and share classes, as well as a general misunderstanding of relevant fund rules. This report [...]

At the beginning of June, HM Treasury confirmed in a press release that UCITS (Undertakings for the Collective Investment in Transferable Securities) funds will continue to be exempt under the UCITS Directive until 31 December 2026.  In essence, this means that UCITS funds could still provide key investor information documents (KIIDs), as required by the UCITS Directive. In the EU, the same exemption is set to expire on 31st December 2021. The announcement of a short extension is expected, most probably 6 months.  However, HM Treasury is about to review the UK disclosure regime which could lead to changes to the UK PRIIPs Regulation to be introduced [...]

At the end of May 2021, the European Securities and Markets Authority (ESMA), the EU’s securities regulator, set out the requirements that funds’ marketing communications must fulfill under the Guidelines for the Regulation on cross-border distribution of funds.  Here is what you need to know: These guidelines apply to: UCITS management companies, including any UCITS which has not designated a UCITS management company Alternative investment fund managers EuVECA managers  EuSEF managers The guidelines affect all marketing communications addressed to: Investors or potential investors for UCITS and AIFs, including when they are set up as EuVECAs, EuSEFs, ELTIFs and MMFs Marketing communications must: Be clearly identifiable as [...]

The first stage of the European Union’s (EU) Sustainable Finance Disclosure Regulation (SFDR) came into effect on 10th March 2021. Despite its seeming complexity, the initiative has one core objective -  to avoid the ‘greenwashing’ of financial market participants. “SFDR sets out rules on transparency and requires FMPs to disclose how they consider sustainability risks in their investment processes and products and how they deal with principal adverse impacts of their investment decisions on sustainability factors, ” ~ Rebecca Macé-Balebs, Senior Associate at Ogier. To accomplish this,  asset managers will be required to publish both pre-contractual and disclosure statements on their websites, distinguishing their products into [...]