Archive:March 2022

1
Europe: Welcome New Clarity on the Phasing in of EU ESG Disclosure Requirements
2
Europe: From Russia With FUD: Settlement of Credit Derivatives Transactions Referencing Entities Under Western Sanctions and Kremlin Capital Controls
3
Europe: Divergence Between UK and EU Priips Disclosures Set to Add Complexity for Managers    
4
Europe: Pressure Grows on UK Regulated Firms to Manage Cryptoasset-Related Risk
5
Australia: More Accessible and Affordable Financial Advice Coming?
6
Australia: FFSP Regime Finally Announced – Good News for Offshore Managers

Europe: Welcome New Clarity on the Phasing in of EU ESG Disclosure Requirements

By: Philipp Riedl

Revised guidance from the European Supervisory Authorities (ESAs) contains much-needed information on the extent to which affected firms should be anticipating detailed Regulatory Technical Standards (RTS) that are not expected to be effective until 1 January 2023. The German regulator BaFin issued an accompanying statement on 30 March 2022. The key information is:

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Europe: From Russia With FUD: Settlement of Credit Derivatives Transactions Referencing Entities Under Western Sanctions and Kremlin Capital Controls

By: Anthony R.G. Nolan and Kenneth Holston

Russia’s war against Ukraine has led in record time to the implementation of extensive anti-Russian sanctions by the United States, the European Union, and the United Kingdom, among others. Those initiatives in turn have led to the imposition of extensive capital controls within Russia. The combined effect of Western sanctions and Russian countermeasures threaten the liquidity and creditworthiness of Russian debt obligations. Although the Russian Federation avoided defaulting on a coupon payment on its dollar bonds on March 16, it subsequently announced that it will satisfy its obligations under rubles a dollar bond coming due on April 4 by making payment of principal and interest in rubles.

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Europe: Divergence Between UK and EU Priips Disclosures Set to Add Complexity for Managers    

By: Andrew Massey

On 25 March 2022, the FCA confirmed new requirements for the key information document (KID) required for package retail and insurance-based investment products (PRIIPs) in the UK: policy statement 22/2.  Investment funds are generally categorised as PRIIPs, although UK UCITS and UK non-UCITS retail schemes are exempted from the PRIIPs KID requirement until 31 December 2026. 

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Europe: Pressure Grows on UK Regulated Firms to Manage Cryptoasset-Related Risk

By: Kai Zhang

On 24 March 2022, the FCA issued a notice reminding firms with cryptoassets exposures of its expectations on certain risks.  The key themes are:

  • Avoiding consumer confusion: As cryptoassets are generally not regulated, the FCA expects firms involved in cryptoassets to ensure that consumers understand the distinction between their regulated business and unregulated business (i.e. relating to cryptoassets).
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Australia: More Accessible and Affordable Financial Advice Coming?

By: Jim Bulling and Alex Morrison

The Australian Government has now released the terms of reference for the Quality of Advice Review. The review follows recommendations made by the Hayne Royal Commission. The objective of the review is to ensure Australians have access to high quality, affordable and accessible financial advice. The review will consider both regulatory and legislative frameworks, consent arrangements for retail and wholesale clients, actions of ASIC and the role of financial services entities and professional associations.

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Australia: FFSP Regime Finally Announced – Good News for Offshore Managers

By: Jim Bulling and Felix Charlesworth

FFSP regime finally announced – good news for offshore managers

On 17 February 2022, the Government introduced the final version of the Foreign Financial Service Provider (FFSP) regulatory regime into Parliament.

The new laws outline three ways in which FFSPs will either be exempt from the requirement to hold an Australian Financial Services Licence (AFSL), or be able to fast track the licencing process. These exemptions will commence on 1 April 2023, to coincide with the expiry of the transitional relief.

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