Archive:February 2023

1
Europe: Important Issues Still Open for Debate in EU’s AIFMD and UCITS Reviews
2
Europe: Central Bank of Ireland Confirms Fast Track approval in Relation to New SFDR RTS
3
Europe:  FCA Sets Ambitious Goal to Improve Asset Management Regulation in the UK
4
Australia: Quality of Advice Report to be Stress Tested
5
Australia: ASIC Reveals 2023 Enforcement Priorities
6
United States: SEC Adopts Rules to Reduce Risk in Clearance and Settlement
7
Australia: Treasury Releases Token Mapping Consultation Paper
8
Europe: UK Regulation of Cryptoassets – Another Glimpse but Still None the Wiser
9
Europe: FCA Sets 2023 Regulatory Priorities for UK Asset Managers
10
United States: SEC Division of Examinations Announces 2023 Examination Priorities

Europe: Important Issues Still Open for Debate in EU’s AIFMD and UCITS Reviews

By Giovanni Campi

On 24 January 2023, the ECON Committee of the EU Parliament adopted its report on proposed amendments to the EU’s main fund rules, AIFMD and the UCITS Directive, ahead of trilogue negotiations with the EU Council and Commission set to begin in March.  When agreed, the revised Directives are expected to come into force in 2025 in light of the 24 months transposition period. Notable proposals include:

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Europe: Central Bank of Ireland Confirms Fast Track approval in Relation to New SFDR RTS

By Áine Ní Riain and Gayle Bowen

On the 17th February 2023, a new Delegated Regulation was published which amends and corrects the existing Sustainable Finance Disclosure Regulation (SFDR) regulatory technical standards with the main changes introducing disclosure requirements for Article 8 and Article 9 funds in respect of fossil gas and nuclear energy related activities to ensure alignment with the EU Taxonomy.  The Delegated Regulation does not provide for a transition period and entered into force on 20 February.

The Central Bank of Ireland in order to accommodate the Delegated Regulation published their Process Clarification which confirms that the Central Bank will facilitate a fast-track filing process for the update of pre-contractual disclosure documents pursuant to the Delegated Regulation.  Compliance with the Delegated Regulation is now a matter of priority for financial market participants and funds sponsors.

For more information on this regulatory update we suggest a read of our full Article or contact one of our authors.

Europe:  FCA Sets Ambitious Goal to Improve Asset Management Regulation in the UK

By Robert Lloyd, Maya Ffrench-Adam and Philip Morgan

On 20 February 2023, the FCA published a discussion paper (DP23/2) on improving the UK asset management regime.  Key themes include:

Alignment with Relevant International Standards 

The FCA does not want to create unnecessary complexity for firms operating in multiple jurisdictions. It aims to develop the regime to interact effectively with international requirements, while promoting the international competitiveness of the UK economy.

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Australia: Quality of Advice Report to be Stress Tested

By Jim Bulling, Anabelle Weinberg and Oliver Herrmann

The Australian Government has released Michelle Levy’s Quality of Advice Review Final Report (Final Report) after a year-long consultation process that includes 22 recommendations across 13 areas to improve the regulatory framework of financial advice.

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Australia: ASIC Reveals 2023 Enforcement Priorities

By Matthew Watts and Rebecca Mangos

The Australian Securities and Investments Commission (ASIC) has revealed its key enforcement priorities for 2023. This year, ASIC has signalled an expanded focus on enforcement activity targeting:

  • sustainable finance practices and disclosure of climate risks;
  • financial scams;
  • cyber and operational resilience; and
  • investor harms involving crypto-assets.
Read More

United States: SEC Adopts Rules to Reduce Risk in Clearance and Settlement

By: Eden L. Rohrer, Raymond F. Jensen

On February 15, 2023, the SEC adopted rule amendments and new rules to reduce risk in clearance and settlement of securities transactions. The amendments to Rules 15c6-1(a) and 15c6-1(c) will shorten the standard settlement cycle for most securities transactions from two business days after the trade date (T+2) to one (T+1) and shorten the standard settlement cycle for firm commitment offerings priced after 4:30 p.m. from four business days after trade date (T+4) to T+2.

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Australia: Treasury Releases Token Mapping Consultation Paper

By Daniel Knight and Oliver Herrmann

New licensing requirements for crypto service providers are coming, following a series of consultations launched last week by Treasurer, Jim Chalmers. The Government approach focuses on strengthening enforcement, bolstering consumer protection and ultimately establishing a new licensing framework.

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Europe: UK Regulation of Cryptoassets – Another Glimpse but Still None the Wiser

By Kai Zhang and Philip Morgan

On 1 February, the UK Government published another consultation paper on the proposed regulation of business relating to cryptoassets in the UK. This is to seek views (by 30 April 2023) on the overall approach and policy direction, and includes a call for evidence to gather more pertinent information on decentralised finance. As such, the consultation does not contain details on any specific proposed rules.  For example, the proposed cryptoasset-related regulated activities described in the consultation paper are stated to be illustrative of the sorts of activities the Government intends to regulate, rather than specific proposals. For further information on this consultation please see our fintech blog here.

Europe: FCA Sets 2023 Regulatory Priorities for UK Asset Managers

By Philip Morgan

One of the UK FCA’s favoured ways of regulating is through “Dear CEO” letters, which seek to place a direct onus on CEOs to address FCA priorities.  On 3 February 2023, CEOs of UK asset management firms were the recipients of one such letter.  Much of the content is not surprising (e.g. the emphasis on consumer outcomes) but we highlight here some particularly notable points: 

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United States: SEC Division of Examinations Announces 2023 Examination Priorities

By: Hayley Trahan-Liptak and Anna E. L’Hommedieu

On February 7, 2023, the U.S. Securities and Exchange Commission (SEC) Division of Examinations (the Division) announced its 2023 examination priorities.[1]  The timing of the announcement, over a month earlier than the Division’s examination priority announcements in the prior two years, suggests a return to normal following pandemic-era examinations.

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