Worldwide: Global Registration Services – Market Update, Q1 2016

Last Updated: 14 April 2016
Article by Emma Conaty and Dhivisha Jeena

AIFMD

Implementation Update

AIFMD has been implemented in 24 of the 31 EEA member states namely Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Italy, Ireland, Lithuania, Luxembourg, Malta, the Netherlands, Norway1, Portugal, Slovakia, Slovenia, Spain, Sweden, and the UK.

Notwithstanding the above, a number of member states have yet to fully transpose national private placement regimes ("NPPRs"), particularly, Greece, Latvia, Liechtenstein and Romania.

There has been no implementation of AIFMD in Poland, and Iceland.

ESMA Q&A on the Application of AIFMD

On 5 April 2016, ESMA published an updated Q&A document on the application of AIFMD and its implementing measures.  The document clarifies the content of certain AIFMD rules and subscribes common approaches and practices to be undertaken by supervisory authorities.   In particular, it provides clarification on the notification requirements relating to additional investment in existing AIFs.

Please click here for a copy of the Q&A.

Ireland

On 24 March 2016, the Central Bank of Ireland (the "CBI") published the 18th edition of the AIFMD Q&A document which revises an existing question (ID 1100) and adds new questions (IDs 1101 and 1102) to provide for the publication of the Guidance Note entitled "Umbrella Funds – Cash Accounts Holding Subscription, Redemption and Dividend Monies" on 24 March 2016.  A new question (ID 1103) covers the Securities Financing Transactions Regulation.

Please click here for a copy of the Q&A and here for a copy of the Guidance Note.

Luxembourg

On 18 January 2016, Draft Law No 6936 was released, which amends, amongst other things, the law of 12 July 2013 on AIFMs (the "AIFM Law") and updates certain cross-references included in paragraphs 5, 10, 15, 32 and 44 of the AIFM Law.  It still has to be approved by the Luxembourg Parliament.

Please click here for a copy of the Draft Law in French.  There is no English version available to date.

Malta

On 11 February 2016, the MFSA announced the launch of a new investment fund structure, namely the Notified AIF.  The new notification framework is available to AIFs marketing towards qualified or professional investors that are managed by a full scope AIFM.  The framework is available to collective investment schemes which do not hold a license issued by the MFSA under the Investment Services Act.

Under the new framework, a Notified AIF may be established as any structure permitted under Maltese law. The Notified AIF will not be authorised or approved by the MFSA and will not be subject to any ongoing supervision.  The MFSA will maintain a list of Notified AIFs on its website and EU/EEA AIFMs may submit a notification to the MFSA for an AIF to be included on the list.  Non-EU AIFMs will be permitted to submit such requests once the country of incorporation of the AIFM is granted AIFMD passporting rights.

The MFSA intends to publish guidelines on the above notification process shortly and the MFSA expects to start receiving notification requests from May 2016.

Please click here for a copy of the MFSA's statement.

The Netherlands

On 2 February 2016, DeNederlandscheBank (the "DNB") and the AFM issued a Statement that non-EU AIFMs notified pursuant to Article 1:13b Section 1 and 2 or Article 2:66 of the Dutch Act on Financial Supervision of 28 September 2006 (i.e. NPPR) will not be required to report on data in respect of the 2015 reporting period.  When reporting requirements are introduced, the DNB will notify non-EU AIFMs of the reporting profile and the first reporting deadline by letter.

Please click here for a copy of the Statement.

Norway

On 28 January 2016, Finanstilsynet published a Statement on AIFMD reporting, providing clarification based on reports received from AIFMs to date.

In the Statement, Finanstilsynet specifies that AIFMs are required to complete Forms KRT-1161 (for the AIFM) and KRT-1160 (for the AIFs).  It emphasises that only AIFMs that have been granted a licence or that registered with the FSA between 1 October 2015 and 31 December 2015 are exempt from AIFMD reporting. AIFs that have been established within this period and have no data to report are still required to report by entering a "zero" reporting in Field 23.

Finanstilsynet also points out an error in the Forms, which state "2016" as the respective reporting period in Field 9 instead of "2015."  AIFMs are required to correct the reporting period in the Forms and, once corrected, Fields 6 and 7 will update automatically.  AIFMs that have already submitted Forms are required to make a resubmission.

Finanstilsynet also provides guidance on the sections of the Forms that are mandatory to complete.

Finanstilsynet indicate that new versions of both Forms will be released for the next reporting period i.e. for the reporting period commencing 1 April 2016.

Please click here for a copy of the Finanstilsynet Statement in Norwegian.  There is no English version available to date.

Europe

France: Catalogue of Statutory and Regulatory Measures for the Marketing of Foreign UCITS

On 18 February 2016, the AMF published a Catalogue of the French statutory and regulatory measures that are applicable to the marketing of shares or units in foreign UCITS in France.  

Please click here for a copy of the Catalogue.

Norway: New Tax Rules on Collective Investment Funds

On 1 January 2016, the Amendment to the Law of 26 March 1999 no.14 relating to Tax on Income and Wealth (Taxation) came into force.  It prescribes new rules on the tax treatment of both collective investment funds and tax resident investors in Norway.   Under the Amendment, the proportion of a fund's equity investment is used to classify the investors' type of income and tax liability, and the total equity portion in a fund is required to be reported to the Norwegian Tax Authority annually.  As a result, Norwegian funds are now required to report this information for their investors' tax assessment. While it is not mandatory for non-Norwegian funds to report same, such funds are expected to either do so on a voluntary basis or provide the relevant information to Norwegian investors to enable them to achieve a correct tax assessment.  

If the required information is not reported by the Norwegian fund or investor (as appropriate), all distributions and gains/losses will be treated as capital/interest income for the unit holders and taxed at 25%.  

Please click here for a copy of the Amendment.  There is no English version available to date.

UK and Belgium: Annual Regulatory Fees

The annual regulatory fees payable to the UK FCA by foreign UCITS marketing towards UK investors for the period 1 April 2015 to 31 March 2016 have been decreased as follows:

Please click here for a copy of the relevant section of the FCA Handbook.

The 2016 annual regulatory fee payable to the Belgian FSMA has been increased to €2,580 (from €2,055).

Please click here for the relevant section of the FSMA website.

Asia Pacific

China: Amended Measures for Investment in Domestic Securities by Qualified Foreign Institutional Investors

On 3 February 2016, the Amended Measures for Investment in Domestic Securities by Qualified Foreign Institutional Investors ("QFIIs") (the "Amended Measures") came into force.  The Amended Measures are the primary manner in which QFIIs can invest in domestic securities in China.  The Amended Measures reduce the amount that each QFII is required to invest and it effectively removes the original US$1 billion upper limit and decreases the lower limit of US$50 million to US$20 million.  The Amended Measures introduce a new two-layer quota system for (i) base quota ranging from US$20 million to US$5 billion; and (ii) investment exceeding US$5 billion.  It also introduces a new filing procedure for quota applications, which are to be submitted to the State Administration for Foreign Exchange via local custodians.

Please click here for a copy of the Amended Measures in Chinese.  There is no English version available to date.

India: Amendment to Income-tax Act

On 15 March 2016, the Central Board of Direct Taxes ("CBDT") published a new Section 9A to the Income-tax Act 1961 together with Rules on its application.  The new section governs the taxation of offshore funds in India and provides a safe harbour rule for the local tax treatment of foreign funds subject to the fund and fund manager satisfying certain conditions.  Section 9A and its accompanying Rules entered into force on 1 April 2015.

Please click here for a copy of the Rules and here for a copy of the CBDT press release.

Japan: Amendments on the Financial Instruments and Exchange Act

On 3 February 2016, the FSA published the final Amendments to the Financial Instruments and Exchange Act (the "Amendments") together with its Responses to public comments on the changes to the QII-targeted Business Exemption (the "Responses"), which came into force on 1 March 2016.  The Amendments limit the application of the QII-targeted Business Exemption available to the General Partner of a Limited Partnership. Under the Amendments, Article 63 Exemption Operators that have made notifications prior to 1 March 2016 will be required to supplement existing notifications with additional information by 31 August 2016.

In the Responses, the FSA particularly emphasised that foreign Article 63 Exemption Operators are now required to appoint a Japan based representative to facilitate communications with the FSA.  Appropriate professional service provides (e.g. lawyers, certified public accountants, affiliated companies with presence in Japan, business operators, independent advisers and translators) may be appointed as a Japan representative.

Please see our Q4 2015 Market Update for additional information on the new requirements introduced by the Amendments.

Please click here for a copy of the Amendments and Responses.

Middle East

Israel: New Regulations on the Distribution of Foreign Funds

On 10 February 2016, the Joint Investment Trust Regulations (Foreign Fund Unit Offerings) – 2016 (the "Regulations") was approved by the Finance Committee of the Israeli Parliament.  The Regulations are the final implementing step of the Joint Investment Trust Law – 1994 and are due to come into force six months after publication.

The Regulations prescribe the circumstances under which EU UCITS and US CIS may obtain approval from the ISA to make public offerings to investors in Israel.  In summary, the main requirements under the Regulations are as follows:

  1. The total AUM of the foreign fund manager is at least US$20 billion;
  2. The foreign fund manager manages at least five funds with units that have been offered to the public for at least five years, and the total value of assets held in each fund for the preceding two years is at least US$500 million;
  3. The NAV of the foreign fund is at least US$50 million and its units have been offered for purchase in one of the European countries or in the US at lease during the preceding year;
  4. A guarantee of 1 million LIS is provided to the ISA together with a deposit of 250,000 to 12 million LIS (as specified in the Regulations) in a local bank.

Please click here for a copy of the Regulations in Hebrew.   There is no English version available to date.

How Maples can help

Maples Global Registration Services ("Maples GRS") supports UCITS2 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.


1AIFMD implementation in Norway is subject to the conclusion of an EEA cooperation agreement.

2Domiciled in Ireland and Luxembourg.

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.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Emma Conaty
Dhivisha Jeena
 
In association with
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement

Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of www.mondaq.com

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

Disclaimer

Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

Registration

Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

Cookies

A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

Links

This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

Mail-A-Friend

If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

Security

This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at enquiries@mondaq.com.

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.