Funds and asset management regulatory news, June 2021 #2

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Selected regulatory updates of interest to the funds and asset management sector. See also our Related Materials links for regulatory updates of broad application.

Contents:

  • Regulation on cross-border distribution of investment funds: Commission Implementing Regulation laying down ITS
  • MMF Regulation: European Commission adopts amendments to Delegated Regulation on investment requirements

Regulation on cross-border distribution of investment funds: Commission Implementing Regulation laying down ITS

Commission Implementing Regulation (EU) 2021/955 laying down implementing technical standards (ITS) produced under Articles 5(3), 10(3) and 13(3) of the Regulation on the cross-border distribution of investment funds ((EU) 2019/1156) has been published in the Official Journal of the European Union (OJ).

The ITS relate to the publication of information by national competent authorities (NCAs) on their websites regarding the national rules governing marketing requirements for funds, and the regulatory fees and charges levied by NCAs relating to fund managers' cross-border activities. They also cover the notification of information by NCAs to the European Securities and Markets Authority (ESMA) for developing and maintaining a central database listing UCITS and alternative investment funds (AIFs) marketed cross-border on ESMA's website.

The Implementing Regulation will enter into force on 5 July 2021. It states that it will apply from the date of entry into force, with some exceptions. Articles 1 and 3(1) apply from 2 August 2021, and Article 5 applies from 2 February 2022.

MMF Regulation: European Commission adopts amendments to Delegated Regulation on investment requirements

The European Commission has adopted a Delegated Regulation (the Amending Regulation) amending Commission Delegated Regulation (EU) 2018/990, which supplements the EU Regulation on money market funds (MMFs) (MMF Regulation), in respect of requirements for assets received by MMFs as part of reverse repurchase agreements.

Under Article 2 of Delegated Regulation (EU) 2018/990, eligible investments in reverse repurchase agreements by managers of MMFs are subject to supplementary qualitative and quantitative requirements. These requirements do not apply to transactions entered into with credit institutions, investment firms and insurance undertakings that are established in the EU or that are covered by an equivalence decision.

The Amending Regulation revises Article 2(6) of Delegated Regulation (EU) 2018/990 to specify the relevant provisions in the Capital Requirements Regulation, the Markets in Financial Instruments Directive and the Solvency II Directive on which equivalence decisions should be adopted for the exemption to be applied in relation to these entities.

The Commission states that it adopted the Amending Regulation following a request by ESMA to clarify the legal bases for the references to equivalence in Article 2(6).

The next step will be for the Council of the EU and the European Parliament to consider the Amending Regulation. If neither the Council nor the Parliament object, it will be published in the Official Journal of the European Union and will enter into force 20 days after its publication.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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