2023 – Page 5 – Global Investment Law Watch

ICYMI: Integrity Council Launches Global Benchmark and Core Carbon Principles for Voluntary Carbon Markets

Aug 18 2023

In case you missed it: late last month, the Integrity Council for the Voluntary Carbon Market (“ICVCM”) launched its Core Carbon Principles (CCPs) and Program-level Assessment Framework (Framework). With the publication of these new standards (developed with the input of hundreds of stakeholders in the voluntary carbon markets), we now have a set of fundamental principles for high-quality credits that create a verifiable climate impact, and a framework for determining whether carbon credit programs are eligible to label themselves as being in compliance with the CCPs.

EUROPE: ELTIFs to become standalone product in Ireland

Aug 17 2023

By Shane Geraghty and Gayle Bowen

On the 16 August 2023, following positive engagement with the Central Bank of Ireland (the “CBI”), Irish Funds (the Irish funds industry representative body) announced that the CBI had indicated that it intends to develop a standalone European Long Term Investment Fund (ELTIF) chapter to be included in the CBI’s Alternative Investment Fund (‘AIF’) Rulebook. This will result in ELTIFs becoming a standalone regulated product in Ireland and facilitate the authorisation by the CBI of ELTIFs under Regulation (EU) 2015/760 and its upcoming amending regulation, Regulation (EU) 2023/606 (the ‘ELTIF Regulations’).

Australia: Consultation Opens for Proposed Review of Managed Investment Schemes

Aug 14 2023

By Kane Barnett and Bernard Sia

The Australian Government has released the long awaited consultation paper on the review of the regulatory framework for managed investment schemes. The consultation paper comes on the back of the Government’s announcement of the review earlier in March this year (see our previous update). The current regulatory regime for managed investment schemes commenced in 1998.

United States: SEC Charges 11 Firms with Record Retention Violations

Aug 11 2023

By: Neil Smith , Hayley Trahan Liptak and Peter Shanley

For over twenty months, the U.S. Securities and Exchange Commission (SEC) has steadily announced settled orders against broker-dealers and investment advisers for failure to retain business-related communication. On 8 August 2023, the SEC released another round of settled orders with 11 firms for violation of Exchange Act Rule 17a-4 for failing to retain off-channel business-related communication. One dually registered broker-dealer and investment adviser was also charged with violating recordkeeping provisions of the Investment Advisers Act of 1940. The content of the orders, and the firms involved, show the SEC’s attention may be shifting from wide-spread violations at large institutions to more limited compliance failures at firms of differing sizes. The assessed penalties, although still considerable, are consistent with this shift.

EU Regulators launch review of SFDR compliance in the investment fund sector

Aug 04 2023

By: Shane Geraghty and Áine Ní Riain

On 6 July, the European Securities and Markets Authority (ESMA) announced it had launched a Common Supervisory Action (CSA) with National Competent Authorities (NCAs) on the integration of sustainability risks and on sustainability-related disclosures in the investment fund sector.

EU Commission announces much anticipated political agreement on AIFMD 2

Aug 03 2023

By: Shane Geraghty and Áine Ní Riain

On 20 July, the European Commission announced political agreement between the European Parliament and the European Council on proposed amendments to the EU’s Alternative Investment Fund Managers Directive (AIFMD). This follows the Commission’s proposal in the form of a draft directive amending AIFMD (AIFMD 2) issued in November 2021, protracted negotiations between the Commission, the Council and the European Parliament since 8 March of this year, and the issuance in June of a compromise text by the Council.

Australia: Financial Accountability Regime: Not That FAR Away

Aug 01 2023

By Jim Bulling and Ben Kneebush

On 8 March 2023, the Government introduced the long-awaited Financial Accountability Regime Bill 2023 and Financial Accountability Regime (Consequential Amendments) Bill 2023 (collectively, the Bills) into Parliament. These propose to establish the Financial Accountability Regime (FAR), a strengthened responsibility and accountability framework that replaces the existing Banking Executive Accountability Regime (BEAR).

United States: CFTC Proposes to Broaden Scope of Eligible Collateral for Initial Margin

Jul 28 2023

By: Kenneth Holston, Cheryl Isaac, Matthew Rogers and Gustavo De La Cruz Reynozo

On July 26, 2023, the Commodity Futures Trading Commission (“CFTC”) proposed an amendment (“Proposal”) to, among other things, expand the universe of eligible collateral for the CFTC’s initial margin (“IM”) requirements for uncleared swaps. The Proposal would result in swap dealers that are not subject to prudential regulation being able to use a broader range of money market funds (“MMFs”) and similar funds as collateral to meet their uncleared swap IM requirements under CFTC Regulation 23.156(a)(1)(ix).

United States: We’re Not in Kansas Anymore: The SEC Proposes Rules for the Use of Predictive Data Analytics by Broker-Dealers and Investment Advisers

Jul 27 2023

By: Richard Kerr and Matthew Rogers

On July 26, 2023, the Securities and Exchange Commission (“SEC”) proposed new rules (“Proposal”) intended to address certain conflicts of interests associated with the use of “Covered Technology” (defined below) by broker-dealers and investment advisers (“firms”) in investor interactions. If adopted as proposed, firms will be required to (i) identify conflicts of interests when using Covered Technology in interactions with investors, and (ii) adopt policies and procedures to eliminate or neutralize those conflicts of interests.

United States: Updating – and Limiting – the Internet Advisers Exemption

Jul 27 2023

By Keri Riemer and Matthew Rogers

On 26 July 2023, the U.S. Securities and Exchange Commission (SEC) proposed amendments (Proposal) to the “internet adviser exemption” set forth in Rule 203A-2(e) under the Investment Advisers Act of 1940, which permits registration with the SEC of certain investment advisers that would not otherwise be eligible for such registration. The proposed reforms would impose new limitations on advisers seeking to rely on the exemption by precluding them from providing advice through a means other than an “operational interactive website” (i.e., a website or mobile application through which the adviser provides “digital investment advisory services” (as defined in the Proposal) on an ongoing basis to more than one client (except during temporary technological outages)).

Archive:2023