AIFM

This OnPoint considers the impact of the EU Alternative Investment Fund Managers Directive (Directive 2011/61/EU) on US-based investment advisers...

Under the European Union's Alternative Investment Fund Managers Directive (Directive 2011/61/EU), non-EU managers will be prohibited from marketing interests in non-EU alternative investment funds to investors in Europe after 22 July 2013 unless cooperation arrangements are in place between the competent authorities of each EU member state in which the funds are marketed and the supervisory authorities of the third country or countries in which the non-EU fund managers and their funds are established. This client alert discusses the approved cooperation agreements on behalf of all 27 EU member state securities regulators and their non-EU counterparts...

Topics in this issue:

Financial Industry Developments
CFPB Final Rule Amendments to Ability to Repay and QM Rule
Extension of Loan Modification Programs
Freddie Mac $1 Billion Performing Modified Loan Securitization
FinCEN Guidance on Virtual Currency Regulation
Rating Agency Developments

Distressed Debt and Restructuring Developments
Patriot Coal Authorized to Modify Union Obligations

Asset Management
Roland Berger SEC No-Action Letter on Broker Dealer Registration
SEC Amendments to OTC Equity Trade Reporting Rules
CFTC Final Rules on Registration and Operation of SEFs

RMBS Litigation
Citi Settles FHFA's $3.5B RMBS Suit
Citi Settles Allstate's $200M RMBS Suit
Motion to Dismiss Granted in Part in $1.75B Repurchase Suit Against BofA, Countrywide
U.S. Bank Sued Over Management of 28 RMBS Trusts

European Financial Industry Developments
ECB Publishes May 2013 Financial Stability Review
EBA Provides Information on Single Banking Rulebook Q&As
ESMA Approves Global Supervisory Cooperation Agreements Relating to AIFM Directive

In this Quarterly Consultation Paper FCA is consulting on miscellaneous amendments to FCA's Handbook...

The Financial Conduct Authority has published final rules to ban the promotion of Unregulated Collective Investment Schemes and certain other non-mainstream pooled investments to the vast majority of retail investors in the UK...

The European Securities and Markets Authority, the pan-EU securities regulator, has announced approval on 22 May 2013 of the necessary cooperation agreements under the Alternative Investment Fund Managers Directive, with a list of 34 securities regulators outside of the EU...

Directive 2013/14/EU of the European Parliament and of the Council of 21 May 2013 amending Directive 2003/41/EC on the activities and supervision of institutions for occupational retirement provision, Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) and Directive 2011/61/EU on Alternative Investment Funds Managers in respect of over-reliance on credit ratings...

With the publication of the revised version of the Alternative Investment Fund Managers Regulations 2013, the terms for UK implementation of the Alternative Investment Fund Managers Directive (Directive 2011/61/EU) are becoming much clearer. Those wishing to manage and market alternative investment funds in the UK can now start to plan...

The ESMA has published a consultation paper on guidelines on AIFMD reporting obligations under Articles 3 and 24 of the AIFMD (Directive 2011/61/EU)...

The Alternative Investment Fund Managers Directive (Directive 2011/61/EU) will, subject to certain transactional provisions, come into force in the UK, and across the EU, on 22 July 2013. It applies certain rules to managers that manage Alternative Investment Funds, which are, broadly, AIFs that are not regulated UCITS funds...

The Central Bank of Ireland is now accepting applications for authorisation under the Alternative Investment Fund Managers Directive (Directive 2011/61/EU) on an informal basis...

Commission Implementing Regulation (EU) No 448/2013 of 15 May 2013 establishing a procedure for determining the Member State of reference of a non-EU AIFM pursuant to Directive 2011/61/EU of the European Parliament and of the Council...

IMA welcomes the opportunity to comment on the FCA CP13/09: Implementation of the AIFMD - Part 2...

Topics in this issue:

Regulation
European Union
European Parliament consults on ways to further enhance the coherence of EU financial services legislation
ESMA issues peer review on Money Market Fund rules
France
AMF opens AIFM pre-authorisation desk and publishes Q&A
Luxembourg
CSSF issues circular 13/564 and BCL issues Circular 2013/231 on the statistical data collection or money markets funds and investment funds
Switzerland
Consultation on FINMA Circular “Distribution of collective investment schemes”
UK
FCA publishes its Annual Funding Requirement for 2013/14
FCA publishes policy and rules for platforms and cash rebates
International
IOSCO Consultation Paper - Principles for Financial Benchmarks
IOSCO Consultation - Regulation of Retail Structured Products

This update summarises current regulatory developments impacting the asset management sector in the UK and throughout the European Union...

Starting 22 July 2013, alternative investment fund managers looking to manage and/or market their funds in EU countries will be subject to the Alternative Investment Fund Managers Directive (Directive 2011/61/EU)...

The Directive 2011/61/EU is the outcome of a G20 consensus for closer regulatory oversight of systemic risks emanating from actors and activities in the alternative investment funds sector. In particular, it aims, at setting-up robust risk and liquidity management systems and at enhancing transparency for investors...

The Alternative Investment Fund Managers Directive (Directive 2011/61/EU) will affect the non-UCITS industry in Luxembourg. It will impact many market players and their existing business models, which may need to be reviewed and adapted. It is anticipated that new service flows will characterise the environment post-AIFMD and that new VAT issues will have to be managed so as to limit or avoid VAT costs...

In response to a number of concerns raised by industry participants arising out of the first of the Government's two consultations on implementation of the Alternative Investment Fund Managers Directive (Directive 2011/61/EC), HM Treasury has now published a set of brief Q&As in advance of its final policy statement...

Topics in this issue:

Legal cutover

Designation of investment firms for prudential supervision by the PRA

PRA's power of direction over unregulated parent undertakings

PRA approach to enforcement

PRA approach documents on banking and insurance supervision

PRA Consultation Paper on "Credit risk: internal ratings based approaches"

ESMA final draft RTS on types of alternative investment fund managers

ESMA guidelines on market maker and primary dealer exemptions under Short Selling Regulation

While 2012 was predicted to see private equity's return to form, deal making disappointed many under the weight of expectation. PE firms may have weathered the turbulence of the financial crisis, but the outlook for 2013 is mixed. Some banks are more willing to lend and a number of large LBO funds are in the market, but fundraising is a challenge and regulatory uncertainty is a major concern...

The start of April 2013 brought the demise of the Financial Services Authority, to be replaced by the Prudential Regulation Authority and the Financial Conduct Authority...

The French financial regulator, the Autorité des Marchés Financiers, hosted a public presentation on 17 January 2013 for French asset management industry professionals, regarding the implementation of the Alternative Investment Fund Managers Directive (Directive 2011/61/EU) into French law - with a focus on the regulatory requirements introduced by the AIFM Directive...

On 19 March 2013, the FSA published the second of its consultations on the new Financial Conduct Authority rules implementing the Alternative Investment Fund Managers Directive (Directive 2011/61/EU)...