Tag: EMEA

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Europe: Systemically important outsourced service providers, eg cloud services, to be identified and regulated in the UK    
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Europe: Reverse Solicitation in the EU Attracting Regulator Scrutiny

Europe: Systemically important outsourced service providers, eg cloud services, to be identified and regulated in the UK    

By: Kai Zhang

In an 8 June 2022 policy statement,  the UK Government proposes a specific regime for supervising “critical” service providers to the financial services industry. This is to address concentration risk as many regulated firms rely on a few large service providers whose failure could potentially threaten the stability of, or confidence in, the UK’s financial system.   The Government observes that in 2020 over 65% of UK regulated firms used the same four cloud providers for cloud infrastructure services.

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Europe: Reverse Solicitation in the EU Attracting Regulator Scrutiny

By: Philip Morgan

In a letter to the EU Commission published on 3 January 2022, ESMA has drawn attention to the fact that most EU regulators do not request or hold information on the extent of the offering of AIFs into the EU on a reverse solicitation basis (as opposed to through active marketing). 

Notable exceptions are Italy and Cyprus. CONSOB has reported that in Italy 25% of the total subscriptions in funds gathered by Italian asset managers directly were done on the basis of reverse solicitation.  It seems that this relatively high figure may have raised eyebrows, and sharpened ESMA’s focus on the issue.

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