Archives: Regulation

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ESMA Advice Extending the AIFMD Passport: Including the United States, Hong Kong, Singapore and Switzerland

On 18 July 2016 the European Securities and Markets Authority (ESMA) published its advice to the European Parliament, the Council and the Commission on the application of the Alternative Investment Fund Managers Directive (AIFMD) passport to non-EU Alternative Investment Fund Managers (AIFMs) and Alternative Investment Funds (AIFs) in twelve non-EU countries: Australia, Bermuda, Canada, Cayman … Continue Reading

The SBEEA: Register of Significant Beneficial Ownership

The SBEEA (Part I: People with Significant Control) Against the backdrop of an increasing push for greater transparency of company ownership, the Small Business Enterprise and Employment Act 2015 (“SBEEA“) took effect on 6 April 2016 which implements the beneficial disclosure requirements of the EU Fourth Money Laundering Directive. The SBEEA imposes a requirement on … Continue Reading

Proposed changes to the UK Limited Partnership Act 1907

On 23 July 2015, the UK Treasury published a consultation paper and draft Legislation Reform (Limited Partnership) Order 2015 setting out its proposed amendments to the Limited Partnership Act 1907 (LPA 1907). The proposals were intended to modernise the law on limited partnerships by removing unnecessary legal complexity and administrative burdens to ensure that UK … Continue Reading

Brexit for asset managers and fund managers – don’t panic, it may not be as bad as it at first appears!

UK regulated fund managers and asset managers should bear in mind that, while the Brexit vote has occurred, this does not bind the UK Parliament. As of the date of writing (12 July 2016), the process of withdrawal under Article 50 of the Lisbon Treaty has not yet started. Although the timetable for withdrawal under … Continue Reading

New “Senior Managers Regime” to be introduced for all financial services firms, including the fund management sector

The Government has confirmed that it will be pushing forward with extending the Senior Managers and Certification Regime to all financial services firms (including investment firms and fund managers), following the Fair and Effective Markets Review (FEMR) report’s recommendation (and Mark Carney’s Mansion House speech indication) of the extension of the SMR to fixed income, … Continue Reading

AIFMD Passporting Update

EU regulated AIFMs promoting EU domiciled AIFs – We have lived with AIFMD since the full implementation date of 22 July 2014 with the marketing passport being available from that date for EU regulated AIFMs promoting EU domiciled AIFs. The ESMA Opinion – Use of the AIFMD Passport – ESMA published its Opinion on 30 July 2015 … Continue Reading

The European Securities and Markets Authority (ESMA) published advice on the extension of the Alternative Investment Fund Managers Directive (AIFMD) passport on 30 July 2015 (the Advice).

For Jersey and Guernsey, the ESMA Advice was positive: no obstacles exist to the extension of the AIFMD passport to these jurisdictions.  AIFMD Article 67 envisages that a delegated act will follow within three months to implement this advice.  However, the time-frame for this now appears to be uncertain. The Advice notes that the Commission … Continue Reading

AIFMD Round 2: Call for Evidence on AIFMD Passport and Non-EU AIFMs

This post was written by Vicky Thatcher. Pursuant to Article 67 of the Directive 2011/61/EU on Alternative Investment Fund Managers (“AIFMD”), the European Securities and Markets Authority (“ESMA”) has until 22nd July 2015 to issue to the European Parliament, the Council and the Commission: (a) an opinion on the functioning of the passport for EU … Continue Reading

What should UK and non EU AIFMs be doing now?

This post was authored by Jacqui Hatfield, regulatory partner at Reed Smith LLP, London. The AIFMD trigger date occurred on 22 July this year, with a 12-month transitional period (TP) in place in the UK for (i) existing UK managers of AIFs (UK AIFMs), and (ii) non-EU managers of AIFs (Non-EU AIFMs) actively marketed in … Continue Reading

SEC proposes new rules under the JOBS Act

On August 29, 2012, the SEC issued proposed rules to implement Congress’ mandate, under the Jumpstart Our Business Startups Act (the “JOBS Act”), that the agency eliminate the existing ban on use of general solicitation and/or general advertising for Rule 506 and Rule 144A offerings. The proposed amendments, if adopted as proposed, would significantly impact … Continue Reading

Draft Finance Bill 2012 Published – Confirmation of Proposed Changes to REIT Regime

As anticipated in our blog of 11 November 2011, last week HM Treasury published the draft Finance Bill 2012 containing proposed changes to the UK’s Real Estate Investment Trust (REIT) regime. Background REITs are tax-efficient property investment companies. They were first developed in the US but were introduced in the UK in 2007. Australia, France … Continue Reading

FSA fines and bans Hedge Fund compliance officer

This post was written by Maria Wall. On 22 November 2011, the Financial Services Authority (“FSA”) publicised that it had fined Dr. Sandradee Joseph £14,000 and banned her from performing any significant influence function in regulated financial services for breaching Principle 6 of the FSA’s Statements of Principle for Approved Persons. … Continue Reading

First Bribery Act Conviction – Update

By way of an update to my blog of last week, Mr Patel was sentenced on 18 November 2011 to three years for the Bribery Act count and six years for the misconduct count, to be served concurrently. He received a discount for his plea of guilty to both counts. The judge, HHJ Alistair McCreath, … Continue Reading

FCPA and Bribery Act Prosecutions

Authorities in both the US and the UK have recently successfully prosecuted offenders of the U.S. Foreign Corrupt Practices Act (FCPA) and Bribery Act respectively. In the United States, the District Court for the Southern District of Florida sentenced the former president of Terra Telecommunications Corp to 15 years in prison for money laundering and … Continue Reading

Now they tell us – EU admits AIFMD may not be suitable for venture capital

On 1 July 2011, the European Union Directive on Alternative Investment Fund Managers (AIFMD) was published (PDF) in the Official Journal of the European Union and is now law. It is no secret that, since the European Commission first mooted the concept of a generic platform for regulating non-retail investment management in Europe, there has been strong criticism … Continue Reading

The SEC and Non-Traditional Marriage

Having been the first advocate to the Investment Company Institute’s SEC Rules Committee to promote the recognition of domestic partners for purposes of federal securities law compliance circa 1998 (with vociferous counterpoint from other Committee members), I am delighted to report the following. In adopting final adviser registration rules under Dodd Frank in 2011, pursuant … Continue Reading

EU Financial Transactions Tax – The Battle Lines are Drawn!

In May 2011 the European Commission published the responses to a consultation paper (PDF) issued in February which asked the European Community to provide its views on the following: whether a new tax on the financial sector should be introduced; if so, what impact the tax would have; and how it should be designed and implemented? In its paper, … Continue Reading

At Least One Big Fish Enters the Murky Regulatory Waters of Social Media

This post was written by Amy J. Greer. While some have suggested that Morgan Stanley’s recent announcement that it will permit its financial advisors to take tentative first steps into the world of social media is nothing but a big yawn, given how fraught the social media world is with potential regulatory land mines, in … Continue Reading

Adoption of Whistleblower Rules by SEC

The SEC adopted final whistleblower rules (PDF) on May 25, 2011. The crux of the news here is that SEC decided not to require whistleblowers to report suspected law violations internally before reporting them to the SEC. Although the SEC staff knows, better than most, the wide variety of things that motivate employees to inform … Continue Reading

Fund updater

Readers of this blog will no doubt be aware that regulators and legislators worldwide are working manically to update their financial services legislation to conform to political agendas (rightly or wrongly) arising from the credit crisis. I thought that it may be useful to give you a reminder of a couple of the forthcoming changes that we’ll … Continue Reading

Guernsey optimistic about the AIFMD – Own Goal for Europe?

On Wednesday I attended the very well-organised Guernsey Funds Forum at the Grange St Paul’s Hotel in London organised by Guernsey Finance. There were three very interesting panel discussions, excellently moderated by TV news anchor Alastair Stewart.  The first of these concentrated on the perhaps rather predictable topic of the Alternative Investment Fund Managers Directive … Continue Reading

AIFM Directive – Happy to sit and wait in the sun?

The controversial European Alternative Investment Management Directive (AIFMD), finally adopted by the European Parliament last November, was originally expected to be published in early 2011, so triggering a two year period in which Member States would be required to get their rule books in order to ensure consistent fund management regulation across the EU. Five … Continue Reading

Remuneration for Asset Managers

The FSA’s revised Remuneration Code (PDF) (the “Code”) came into force on 1 January 2011. Those newly within its scope are expected to comply in full by 1 July 2011. Overall, the Code will have a lower impact on fund and asset managers than first feared, but will increase the ever-growing compliance burden as managers have to … Continue Reading