Europe: ELTIF 2.0 Has Been Published
On 15 March 2023, amendments to the EU Regulation on the European Long-Term Investment Fund (ELTIF) were published in the Official Journal of the European Union. They will apply from 10 January 2024.
Read MoreUnited States: SEC Proposes Amendments to Broaden the Scope of Regulation S-P in Response to Digital Communications and Risks to Customer Personal Information
By: Trayne S. Wheeler, Brian Doyle-Wenger, and Gustavo De La Cruz Reynozo,
On March 15, 2023, the U.S. Securities and Exchange Commission (“SEC”) proposed amendments to Regulation S-P. The proposed amendments would require covered institutions to enhance protections of consumer information by requiring the adoption of written policies and procedures for an incident response program. The amendments would expand the scope of Regulation S-P by requiring covered institutions to provide timely notifications to individuals affected by data breaches and by extending the definition of the information covered by the regulation.
Read MorePeople’s Republic of China: CSRC Released New Cybersecurity and Data Privacy Rules for Securities and Futures Institutions
By Chloe Duan and Grace Ye
The China Securities Regulatory Commission (CSRC) released the Administrative Measures for Network and Information Security in Securities and Futures Sectors (Measures) on 27 February 2023, which will become effective on 1 May 2023.
Read MoreAustralia: Further Details of Proposed Review of Managed Investment Schemes Announced
By Kane Barnett and Bernard Sia
The Australian Government has provided further details of the previously announced review of the managed investment schemes (MIS) regulatory framework (Review). The Review was announced in the 2022-23 Federal budget, and with $2.7 million committed, is intended to test the effectiveness of the current framework.
Read MorePeople’s Republic of China: Standard Contractual Clauses for Export of Personal Information Were Officially Released
By Grace Ye and Chloe Duan
China has promulgated a series of laws and regulations governing data protection, in particular data export in past years.
The People’s Republic of China (PRC) law currently provides three routes for data export, i.e., (1) Cybersecurity Administration of China (CAC) assessment, (2) certification (by professional institutions), and (3) standard contractual clauses (SCC). Depending on the nature and volume of data to be exported and the identity of the exporter, the exporter must pick at least one route in order to export data.
Read MoreEurope: Is ELTIF 2.0 a More Viable Structure for Long-Term Investment in the EU?
Version 1 of the European Long-Term Investment Fund (ELTIF) has not been a huge success story with only a few relatively small funds launched to date. However the development of a well-supported fund structure for retail investors to invest in illiquid long-term assets remains a key priority for EU legislators.
Read MoreEurope: Important Issues Still Open for Debate in EU’s AIFMD and UCITS Reviews
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:
Read MoreEurope: 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.
Read MoreUnited 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.
Read MoreEurope: FCA Sets 2023 Regulatory Priorities for UK Asset Managers
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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