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Highlights:
Guidelines on sustainable fund names from the EuropeanSecurities and Markets Authority will go into effect on November 21 followingthe publication of official translations, with a transition period for existingfunds lasting until May 21 next year. The guidelines are designed to avoidmisleading investors through greenwashing. National regulators must notify ESMAby October 21 if they already comply or intend to comply with the guidelinesor, alternatively, that they do not intend to comply.
Luxembourg Market Update:
Atthe end of June, a total of €5.6trn in net assets were managed inLuxembourg-domiciled regulated investment funds, an increase of €110bn from theprevious month and a 7.4% increase over the previous 12 months, according tofinancial regulator CSSF. The growth was made up of €26bn in net newsubscriptions and €84bn from rising prices of funds' financial assets,particularly US and Asian equities. The CSSF says Luxembourg's fund industrycomprised 13,838 portfolios at the end of June.
RegulatoryDevelopments in and beyond Luxembourg:
2July 2024: CSSF publishes Annex of Circular CSSF 22/822
TheCSSF has published its updated Annexof Circular CSSF 22/822 listing the jurisdictions that the FATF qualifies as(i) high-risk jurisdictions on which enhanced due diligence and, whereappropriate, counter-measures are imposed; and (ii) jurisdictions underincreased monitoring of the FATF.
3July 2024: ESMA publishes a final report on the RTS for MiCA
TheEuropean Securities and Markets Authority (ESMA) has published a final reporton the Draft Technical Standards, specifying certain requirements of theMarkets in Crypto Assets Regulation (MiCA) – second package.
Inthis final report,ESMA proposed technical standards regarding:
· Sustainability indicators in relationto climate and other environment‐related adverseimpacts;
· Measures to ensure continuity andregularity in the performance of crypto-asset services;
· Pre-and-post-trade transparencyrequirements;
· Record keeping obligations for CASPs;
· Machine readability of white papersand white papers register;
· Technical means for appropriatepublic disclosure of inside information.
14July 2024: CSSF updates FAQ on cross-border distribution of funds (CBDF)
TheCSSF has published an updated version of its FAQconcerning notification procedures under the CBDF Regulation. The changes areindicated on page 3 of the FAQ and include an update of Q9 and Q15 on UCITS notifications,the addition of Q5 on AIFM notifications.
15July 2024: The CSSF publishes Circular CSSF 24/856 in English
TheEnglish version of CircularCSSF 24/856 is now available. This new Circular, which repealsCircular CSSF 02/77, was initially published in French on 28 March 2024. CircularCSSF 24/856 outlines guidelines in case of errors in calculating the net assetvalue (“NAV”) of a UCI, instances of non-compliance with the investment rulesapplicable to UCIs as well as other errors at UCI level. (In case ofdiscrepancies between the French and English texts, the French text prevails.)
17July 2024: ESAs publish second RTS and guidelines batch on DORA
Thethree European Supervisory Authorities (EBA, EIOPA and ESMA) published final draftson the second batch of level 2 and 3 files under DORA. These drafts include:
· RTS and ITS on content, format,timelines and templates for reporting major ICT-related incidents and cyberthreats;
· RTS on subcontracting of critical orimportant functions;
· RTS on oversight harmonisation;
· RTS on threat-led penetration testing(TLPT);
· Guidelines on aggregated costs andlosses from major incidents;
· Guidelines on oversight cooperationbetween the ESAs and competent authorities.
On26 July 2024, the ESAs published a joint final reporton the draft technical standards on subcontracting under DORA, completing thissecond batch of regulatory elements.
Afterhaving received the final draft of technical standards, the European Commissionwill now begin their review, aiming to adopt these policy products in thecoming months.
17July 2024: ESMA publishes its report on STORs
ESMAhas published a reportcontaining detailed breakdowns in relation to the origin of SuspiciousTransaction and Order Reports (STOR) collected in 2023:
· Per country: Germany received thehighest number of notifications with 2,588, representing 35% of the total.France followed, with 1,149 notifications, accounting for 15% of the total.Sweden received 8% of the total, Hungary 6%, and the Netherlands and Norwayeach received 5%.
· Per source: The majority ofnotifications originated from investment firms (77%), followed by other parties(13%), RMs (7%) and MTFs/OTFs (3%).
· Per instrument type: The greatmajority of notifications concerned shares (85%), followed by bonds (7%),derivatives (5%), other instruments (2%) and combination of instruments (lessthan 1%).
For further information, please contact:
Tobias Ettlin
m: +352 691 111 931
Disclaimer: This regulatory updatehas been prepared for clients of ONE group solutions and its subsidiaries for informationalpurposes and is not intended to be relied upon as professional advice. Pleasevisit: https://www.one-gs.com/