Publications for Asset Management and Investment Funds Committee

A brief overview of Brazil’s new investment funds regulatory framework

On 23 December 2022, the Comissão de Valores Mobiliários (the Brazilian Securities and Exchange Commission or CVM) issued the long-awaited Resolution No. 175 (the Resolution), which provides for the new Brazilian investment funds regulatory framework. When in effect, the Resolution will implement a new way of organising the regulations applicable to Brazilian-formed investment funds.

Released on May 10, 2023

New ESG self-regulatory developments in Switzerland

The purpose of this article is to summarise recent developments in the asset management sector in Switzerland in the field of environmental, social and governance criteria (ESG). In view of the recent developments, especially in the European Union, the Swiss Government’s objective is to prevent international disparities as regards ESG regulations, in particular as to the prevention of ‘greenwashing’ and creating the conditions to strengthen the creditability and quality of the Swiss financial market as a whole, and the Swiss asset management and financial products industry in particular on sustainability.

Released on Aug 19, 2022

AIFMD II: The latest developments

EU Directive 2011/61/EU, commonly known as the Alternative Investment Fund Managers Directive (the ‘Directive’ or ‘AIFMD’), came into force on 22 July 2013 and had a profound effect on the alternative investment fund industry, not just within the European Union but across the world. This article provides a brief overview of (1) the proposed timeline for AIFMD II; (2) the latest developments in the process; and (3) the likely impact of the proposed changes on the alternative investment funds industry.

Released on Aug 19, 2022

Will foreign investment advisers be required to register in Chile?

A new law will regulate independent investment/financial advisory services in Chile for the first time, but there is some confusion as to its scope.

Released on Sep 3, 2021

Developments in Ireland's fund servicing landscape

This article summarises the ways in which the fund servicing market in Ireland has gone through a period of change and evolution, for example with recent years seeing increasing levels of consolidation among international fund service providers with Irish operations.

Released on Sep 3, 2021

Regulating the cross-border distribution of collective investment undertakings in the EU: the example of Luxembourg

On 2 August 2021, Directive (EU) 2019/1160 on the cross-border distribution of collective investment undertakings (the 'CBDF Directive') and the associated Regulation (EU) 2019/1156 entered into force in the EU. In Luxembourg, a law dated 21 July 2021 implements the CBDF Directive. Moreover, the Commission de Surveillance du Secteur Financier, the regulator of the Luxembourg financial sector, published Circular CSSF 21/778 and a Q&A, as well as additional information on its website. This article summarises the impact of these new rules on the distribution of funds.

Released on Sep 3, 2021

The upcoming regime for marketing foreign funds to retail investors in the UK

Twin pressures – the need to recognise EU funds and the pressure to be open to international investment – have led the UK post-Brexit to the conclusion that the current regime for recognising non-UK funds for sale to UK retail investors is inadequate. The solution is the creation of a new overseas funds regime that is streamlined and yet provides for the UK’s Financial Conduct Authority to have sufficient scrutiny of fund applications. More contentious in the new regime is the political 'overlay' that gives the UK's political authorities wide discretion to decide on country and fund type regulatory equivalence.

Released on Sep 3, 2021

Switzerland: new rules for asset managers under the Financial Services Act

This article outlines the main obligations of a provider of financial services under the new financial legislation that entered into force in Switzerland on 1 January 2020.

Released on Sep 3, 2021

Investments of Brazilian residents in offshore investment funds

Among measures to combat the economic downturn resulting from the Covid-19 pandemic, the Brazilian Central Bank implemented additional cuts to the already record-low Selic rate. It is in this context that offshore financial products such as shares of offshore investment funds – which until recently were not very popular among most segments of Brazilian investors – started to become more well-known and became investment alternatives.

Ireland: navigating tax residence and permanent establishment issues during Covid-19

In these unprecedented times of restrictions on the movement of people, complying with the usual guidelines surrounding tax residence and avoiding the creation of taxable permanent establishments have created significant challenges and concerns across all sectors, including the international funds industry. However, in this regard, pragmatic guidance has been published by many tax authorities in line with the recommendations of the Secretariat of the Organisation for Economic Co-operation and Development.

The Economic Freedom Act and its impacts on the Brazilian investment fund industry

Last year President Bolsonaro sanctioned the so-called Economic Freedom Act, in line with the government’s efforts to foster the overall level of economic activity in Brazil. Among other developments, it has introduced some remarkable changes to the investment funds industry. This article sheds some light on the most important changes affecting the industry.

Offering of investment funds under the new Swiss Financial Services Act – a change of paradigm

On 1 January, new financial legislation entered into force in Switzerland, bringing significant changes to the regulatory framework applicable to financial sector participants. In particular, the Federal Financial Services Act and its implementing ordinance impose new obligations on those endeavouring to market financial products and services in Switzerland.

The impact of Covid-19 on UK authorised funds

The Covid-19 outbreak has raised a number of questions for UK authorised fund managers relating to the operation of their UK authorised funds. Organisations’ responses to Covid-19 have also thrown into the spotlight the social aspect of sustainable investing, as the outbreak continues to test the resilience of company policies relating to measures such as working from home, sick leave and furlough.

Asset management and technology – the intersect

It is a settled fact that technology is a key component of asset management. Aspects of the investment process include trading, risk management, operations and client service. Considering the quantity of information in our environment today and the importance of technology in accessing markets, every organisation that manages assets, whether it is an asset management company or an asset owner that manages its assets internally, uses technology as part of its investment process.

EU regulatory action on performance fees in retail funds

The European Securities and Markets Authority (ESMA) has trained the regulatory spotlight on the charging of performance fees and retail funds. It has published guidelines for European regulators on requirements for performance fees in both Undertaking for Collective Investment in Transferable Securities funds and retail alternative investment funds (AIFs). Its stated goal is to harmonise EU supervisory practices in the area.

The investment environment in Nigeria after Covid-19

Experts suggest that Nigeria, Africa’s largest economy and market with a population of 200 million people, faces tough economic times in the near future, due to its own peculiar circumstances. The situation is compounded by the economic impact of the Covid-19 pandemic and the consequential partial or wholesale shutdown of several of its cities and states.

Analysis of the European Shareholder Rights Directive II from an investment fund perspective

The article focuses on the impact on investment funds of the European Shareholder Rights Directive II, which aims to encourage long-term shareholder engagement and increase transparency between companies and investors. It identifies the requirements imposed by the new regulation on the service providers typically involved in the operations of an investment fund, such as asset managers, institutional investors, proxy advisers and intermediaries. It also analyses some practical aspects related, for example,

Central Bank of Ireland maintains focus on fund liquidity

The Central Bank of Ireland has, like many other regulators, sharpened its focus on investment fund liquidity during the past year for a variety of reasons.

The Brazilian perspective on investment funds in the time of Covid-19: challenges and emerging opportunities

The Covid-19 pandemic has had many consequences around the world, including in the Brazilian investment funds industry. The crisis and its important and valuable lessons provide an opportunity for re-invention: a new way of investing, a new direction for capital markets as an essential source for recovery and the beginning of a ‘new normal’.