Global Registration Services – Market Update Q4 2018

AIFMD

ESMA updated AIFMD Q&As

On 4 October 2018 ESMA updated its Q&As on AIFMD.

It includes a new Q&A which clarifies the application of the AIFMD notification requirements in relation to AIFMs managing umbrella AIFs on a cross border basis.

ESMA updated Table of MoUs

On 30 October 2018 ESMA published an updated Table of AIFMD MoUs signed by the EU authorities.

Brexit

UK Temporary Permissions Regime ("TPR") EEA to be allowed to add new sub-funds following Brexit

As noted in our recent client update HM Treasury on 7 December 2018 published a draft of the Collective Investment Schemes (Amendment) (EU Exit) Regulations 2019. These will allow an EEA Member State which has notified the UK FCA of their intention to enter the UK's TPR prior to 29 March 2019 ("Exit Day") to include a sub-fund in the TPR post Exit Day.

The FCA will allocate each investment fund that has availed of the TPR a three month landing slot during which they will be required to submit: an application for recognition (for marketing to retail investors) or a notification (for marketing to professional investors only), if they wish to continue marketing in the UK following expiry of the TPR.

The FCA expects the first landing slot will be between October 2019 and December 2019 and that the last will be from January 2021 to March 2021. Each investment fund must submit the application / notification during the three month period to which they are allocated, failing which the marketing of the fund in the UK will no longer be permitted on the same basis as before Exit Day.

Europe

Denmark

Draft bill proposes easy access for foreign investment funds to Danish retail investors

On 5 October 2018 the Danish Government published a draft bill for public consultation. Which if approved, will amend:

The taxation of Danish individuals' investment in funds classified for Danish tax purposes as "investment companies"; and The Danish dividend tax liability for non-Danish investors' investments in Danish investment funds. These proposed amendments aim to:

Remove tax barriers for Danish individuals' investments in non- Danish mutual investment funds (especially exchange-traded funds);and Attract capital to Danish investment funds. They are due to take effect from the income year 2019.

European Commission evaluation on Distance Marketing of Financial Services

On 4 January 2019 the European Commission's December 2018 evaluation and fitness check roadmap on Distance Marketing of Financial Services closed. It aims to evaluate the Distance Marketing of Financial Services Directive ("Directive"), in line with the Better Regulation Principles. The evaluation collated information on the effectiveness of the Directive, particularly, in relation to the following aspects:

Unsolicited services and communications; Regulatory choices by Member States; Relationship between product specific legislation in the field...