Some key regulatory developments have been the subject of specific Arthur Cox briefings over the last two months, links to which are as follows:

Bank Recovery and Resolution Directive – FAQs Link to Briefing
Central Bank updates Q&As on Shanghai-Hong Kong Stock Connect, AIFMD, UCITS and Directors' Time Commitments Link to Briefing
Credit Servicing is now a regulated business Link to Briefing
ESMA advice on extension of AIFMD passport to Non-EU AIFMs and AIFs Link to Briefing
ESMA delays opinion on the extension of the AIFMD passport to non-EU entities and publishes update to AIFMD Q&A Link to Briefing
ESMA issues consultation on UCITS V remuneration Link to Briefing
European Long-Term Investment Funds Link to Briefing
Investor Monies – Revised Regulations and Guidelines Link to Briefing
New Court review process available for rejected personal insolvency proposals Link to Briefing
Reminder for Investment Firms: Client Assets Key Information Document required from 1 October 2015 Link to Briefing

Other key legal and regulatory developments during the last two months are summarised below:


  • Virtual currencies: On 26 June 2015, the Financial Action Task Force (FATF) adopted Guidance for a Risk-Based Approach to Virtual Currencies, setting out how specific FATF Recommendations should apply to convertible virtual currency exchangers in the context of virtual currency payment products and services, and identifying anti-money laundering (AML) and counter terrorist financing (CTF) measures that could be required. It also identifies obstacles to applying mitigating measures.
  • Crowdfunding: On 1 July 2015, the European Securities and Markets Authority (ESMA) published Questions & Answers intended to promote common supervisory approaches between national competent authorities when applying AML and CTF rules to investment-based crowdfunding platforms. While some investment-based crowdfunding platforms are automatically subject to the Third Anti-Money Laundering Directive (Directive 2005/60/EC) by virtue of being regulated under the Markets in Financial Instruments Directive (MiFID) (Directive 2004/39/EC), others are not (perhaps being regulated under different EU rules, domestic legislation or not at all). The ESMA Questions & Answers are aimed at platforms not regulated under MiFID.


  • Buy-in process: On 30 June 2015, ESMA issued a Consultation Paper on the operation of the buy-in process under the central securities depositaries regulation (Regulation (EU) 909/2014) (the CSD Regulation) whereby, when a failing participant does not deliver the financial instruments referred to in Article 5(1) of the CSD Regulation to the receiving participant within 4 business days after the intended settlement date, a process is initiated whereby those instruments will be available for settlement and delivered to the receiving participant within an appropriate time-frame. The consultation closed on 6 August 2015 and final draft regulatory technical standards (RTS) are now awaited.
  • Penalties for settlement fails: On 5 August 2015, ESMA published its final Technical Advice to the European Commission (the Commission) on suggested content for Level 2 measures dealing with penalties for settlement fails (the CSD Regulation provides for a daily cash penalty to be applied for failed settlement instructions) and the substantial importance of a central securities depositary (CSD) (the CSD Regulation requires home and host competent authorities to put in place formal cooperation arrangements for the supervision of a cross-border CSD where its activities are "of substantial importance for the functioning of the securities markets and the protection of the investors" in the host Member State).


  • Bureaux de Change and Money Transmission Businesses: The Central Bank of Ireland (the CBI) has updated its Information on the Charge Approval Process for bureaux de change and money transmission businesses under Section 149A of the Consumer Credit Act 1995 (as amended).


  • New consultation on moving to full industry funding: On 3 July 2015, the Department of Finance and the CBI published a Joint Consultation Paper on funding the cost of financial regulation in Ireland with the aim of moving from partial to full industry funding. Among other matters, the Consultation Paper seeks views on whether interested parties feel that it is appropriate for taxpayers to continue to fund a significant proportion of the cost of financial regulation activity, whether industry should instead be required to fully fund the cost of financial regulation activity, whether a move to full funding should commence in 2016 and whether that move should take place in a single step. The consultation closes on 25 September 2015.

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This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.