Originally published January 31, 2014
AIFMD
AIFMD Co-Operation Agreements
On 19 October 2013, ESMA published a table regarding
signed cooperation agreements under the AIFMD 2011/61/EU.
This table was updated as of 11 December 2013.
Please click here for further details.
Cayman Islands – Cayman Islands Monetary Authority
signed AIFMD MoU with BaFin
In November 2013, CIMA signed an MoU with BaFin in Germany
in respect of the AIFMD. Maples issued an update in this
regard.
Please click
here for further details.
Implementation Update
Finland
The Finnish implementation of the AIFMD has been
delayed. The process of implementation is underway with the
new legislation currently estimated to enter into force in Q1 2014
with the Finnish FSA implying implementation on 1 March 2014.
Italy
On 4 December 2013, the Italian Government approved a
first draft of legislative decree regarding the implementation of
the AIFMD.
The draft legislation is currently under review by the competent
parliamentary committees and the review process was scheduled to
end on 13 January 2013, however this deadline was extended.
Norway
The Norwegian implementation has been delayed.
According to official information the implementation is likely to
take place at the beginning of 2014 with the Act coming into force
on or about 1 April 2014.
Poland
The Ministry of Finance has published the first draft of
the general concepts in relation to the implementation of the AIFMD
in Poland. According to the draft, AIFMD will be implemented
in relation to non-UCITS investment funds by adding the additional
requirements under the AIFMD to the Polish Act on Investment Funds
currently in force. In relation to other entities which come
under the scope of AIFMD, a separate act on alternative investment
fund managers is planned with final implementation scheduled for
Q2, 2014.
Europe
Cyprus – AIFM Fees
CySEC has published Directive DI56-2013-02 in relation to
initial application fees and annual contributions for AIFMs seeking
to market locally.
Please click here for further details.
Denmark – Notice regarding changes on the procedures
for publication of share classes of sub-funds of foreign
UCITS
On 20 December 2013, the Danish FSA issued a notice
regarding changes on the procedures for the publication of share
classes of sub-funds of foreign UCTS. From 16 November 2013,
foreign UCITS shall no longer inform the Danish FSA regarding the
marketing of new shear classes; change of the name of one or more
share classes; merger or division of share classes, cessation of
share classes, and changes in ISIN or code numbers. Share
classes will no longer be registered on the FSA homepage.
Please click here for further details.
ESMA – Revised Guidelines on AIFMD Reporting
On 18 November 2013, ESMA published revised guidelines on
reporting obligations of the AIFMD which provide clarification
regarding AIFMs reporting to National Competent Authorities.
Please click here for further details.
France – Marketing of Complex Financial
Instruments
On 11 October 2013, the AMF News section referred to
marketing of complex financial instruments. As structured
funds and complex debt securities present risks that retail clients
cannot easily understand, the AMF reminds professionals (investment
services providers, financial investment advisers and direct
marketers) of their obligations when marketing these products, and
lays down four criteria for appraising mis-selling risks.
Please click here for further details.
France – Structured and/or "Guaranteed"
UCITS and AIFs
On 17 October 2013, the AMF published a paper (no.
2013-12) to remind professionals (investment service providers,
financial advisers and direct marketers) of their obligation when
marketing the above products and their criteria for misspelling
risks.
Please click here for further details.
Germany – Investment Tax Act
On 29 November 2013, the bill for the adjustment of the
German Investment Tax Act was approved. This will introduce
two new tax regimes for AIFs subject to certain provisions:
i.e. investment partnerships; and investment companies. UCITS
and open-ended AIF investment funds will be treated as
"investment funds" under the new tax regime and will be
fully tax transparent if certain reporting and publication
requirements are adhered to.
Subsequently, on 4 December 2013, the German Federal Ministry of
Finance issued a second clarification letter regarding the
application of the new regulations.
Ireland – AIFMD – Q&A
On 13 December 2013, the CBI published its 6th Edition of
AIFMD Q&A of particular note was the insertion of the new
question ID 1068 whereby the CBI clarified their position for AIFM
seeking to market other than under the AIFMD passport.
Further, question ID 1021 has also been modified to provide
additional guidance in relation to Article 36 of the AIFMD.
Please click here for a copy of the Q&A.
Italy – ESMA Guidelines on ETFs and other UCITS
changes to the Issuers' Regulation
On 21 October 2013 Consob published that as of 8 October
2013 the Issuers Regulation had been updated to reflect
ESMA/2012/832 guidelines on matters relating to ETFs and other
UCITSs and to the Q&A session ESMA/2012/592 on KIIDs.
Please click here for further details.
Luxembourg – Fees
On 31 October 2013, the CSSF issued a regulation in
connection with fees to be levied. This regulation is
applicable from 1 November 2013 and introduces fees
in relation to entities derived from AIFM law. The levy
imposed on foreign UCITS seeking to passport into Luxembourg
remains unchanged. The fees to be levied by the CSSF are
payable by the different financial entities supervised in
Luxembourg.
To view the full text (in French) please click here.
Luxembourg – Reporting requirements for investment
firms from 2014
On 18 November 2013 the CSSF issued a circular in
connection with requirements for credit institutions and investment
firms Circular CSSF 13/575 on reporting requirements applicable to
investment firms from 2014.
Please click here for further details (only available in
French).
Switzerland – Collective Investment Scheme Act
On 14 November 2013, FINMA issued a press release
regarding protocol requirements. New Article 34a of the CISO
and new Article 24, paragraph 3 of CISA will enter into force on 1
January 2014. They provide an obligation to keep minutes when
distributing collective investment schemes. Form and content
of the minutes must comply with guidelines issued by a
self-regulatory organisation which were issued in November 2013, by
the Swiss Bankers Association issued. They are binding on all
persons involved in distribution of collective investment
schemes.
Please click here for further details.
Americas
Canada - Proposed Changes to Registration Rules for Dealers,
Advisers and Investment Fund Managers
On 5 December 2013, the CSA published for comment
proposals to amend the regulatory framework for firms and
individuals who trade in securities, provide investment advice or
manage investment funds.
Please click here for more details.
Asia Pacific
Australia – Refined 'Hedge Fund'
Disclosures
The ASIC has amended the assessment for schemes that will
be considered hedge funds regarding new hedge fund disclosure
requirements and the requirement to comply with the shorter PDS
regime. These requirements are mandatory for funds which are
offered to retail investors in Australia, while hedge funds, which
are offered to wholesale investors, are 'encouraged' to
comply. It will be necessary for funds that fall within the
revised definition of hedge fund to comply with the disclosure
obligations set out in Regulatory Guide 240: Hedge funds: Improving
disclosure (RG 240).
Please click here for further details.
Hong Kong – Update to FAQ on the Post
Authorisation Compliance Issues
On 4 October 2013, the SFC added Question 15 in their FAQs
section in respect of Post Authorisation compliance issues of
SFC-authorised Unit Trusts and Mutual Funds i.e. "can a
management company re-allocate part of the RQFII quota from an
existing SFC authorised RQFII fund for other uses such as launching
other RQFII products.
Please click here for further details.
Hong Kong – SFC issues Circular regarding Investment
Products on revised Application Lapse Policy
On 29 November 2013, the SFC issued a circular to
applicants of SFC-authorised investment products on revised
application lapse policy. In this circular the SFC note that
the former lapse policy introduced in June 2010 was intended to
weed out applications where it felt there was no serious intention
to proceed. It acknowledges that the relatively long processing
time for authorising applications is far from optimal and has
therefore decided to revise the 12 month lapse policy as follows.
All applications for authorisation of funds on or after 1 January
2014 will be processed as follows:
- if six months have elapsed from the Take Up Date and no authorisation has been granted the application will lapse subject to the SFC's right to grant an extension at its sole discretion. The application fee will not be refunded;
- if four months have elapsed from the Take Up Date and no authorisation has been granted the SFC will issue a letter reminding and informing the applicant that the application will lapse at the expiry of six months from the Take Up Date; and
- once an application has lapsed, if the applicant wishes to seek authorisation it must make a new application and remit a new application fee therefore repeating the application process.
The revised policy does not apply to applications for
authorisation of approved pooled investment funds which are made
pursuant to both the UT Code and the SFC Code on MPF Products (i.e.
to mandatory provident fund schemes and approved pooled investment
funds).
Please click here for further details.
Middle East
United Arab Emirates – Fees – Investment
Funds
An update will issue shortly in respect of official fees
charged in relation to investment funds in the UAE and also
instructions regarding the payment of such fees.
- Fees in connection with the promotion of foreign investments funds (examination fee – non-refundable) AED 5,000;
- Fee for issuing approval to promote a foreign fund through a private offering AED 15,000; and
- Fee for issuing approval to promote a foreign fund through a public offering AED 30,000). These fees are fund specific and will be incurred for each new fund to be promoted.
The fees are one off fees and no annual fee will be
charged.
How Maples can help
Maples Global Registration Services
("Maples GRS") supports
UCITS and AIFMs in their multi-market distribution strategies
by providing an integrated global network of experts coordinated by
a dedicated central team supporting all legal and regulatory
aspects governing the cross border marketing of investment funds on
both a private placement and public offer basis.
Should you require any further information or assistance in this regard, please do not hesitate to contact a member of the Maples GRS team.
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.