Regulation and Compliance - Articles & White Papers
Reports and white papers on investment regulation and compliance issues. Amongst the research in this investment compliance and regulation section are white papers on AIFMD (Alternative Investment Fund Managers Directive) and Solvency II - particularly the practical implications for fund managers and insurers. Reports discussing the impact of regulation on fund management...
companies, and the operational challenges this presents, have been particularly well received, whilst regulatory primers (for instance providing an overview of who regulates whom and how) have also been well read. Other surveys and articles cover financial regulatory policy, hedge funds regulation, investment regulation, risk management, IFRS financial statements, GIPS performance reporting and the future of investment compliance for asset owners.
The greening of the global economy presents significant opportunities to investors. However, investors and policymakers face a common challenge: How can green business activities be systematically identified, categorized, and measured across diverse sectors, supply chains and asset classes to mobilize investment at scale?…
The PLSA publishes a guidance report for trustees of both DC and DB schemes, which outlines their requirements to publicly disclose their Statement of Investment Principles (SIP), and state how these principles have been implemented.
The European Union's capital market union needs a revamp because of Brexit and the deep recession, and to underpin the European Green Deal. In particular, equity capital in the countries of central and eastern Europe is underdeveloped. These countries should take measures to facilitate equity finance, accompanied by…
A scalable, unified platform of software, data and services that produces a single, consistent, enterprise-wide “source of truth” is increasingly essential for asset managers.
New approaches to collateral management are emerging. Firms with years of experience navigating the cleared versus uncleared complexities are converging with newly in-scope firms angling to differentiate themselves with thoughtful solutions.
The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Securities and Exchange Commission (the SEC) and the Commodity Futures Trading Commission (together, the Agencies), on June 25, 2020, promulgated a final rule (the 2020 Final…
Speaking with Ravi Beegun, head of asset management at KPMG, Eduardo Gramuglia, head of State Street Luxembourg, shares his insights into how the financial industry is embracing its long-awaited connection with technology. As the industry looks toward a post-COVID environment, Eduardo stresses that the lessons learned during…
As the post-trade environment evolves, the pace of regulatory development is forcing businesses to rethink their operating models and value chain when it comes to long-term shareholder engagement.To foster stewardship of assets and improve corporate governance practices, the Shareholder Rights Directive II aims to provide…
The European Union in March, quietly released the final draft of the sustainable finance taxonomy, a document which will change how almost every market participant invests, possibly forever.From 2022, the responsibilities of financial advisers operating in the European Union will expand to encompass the evaluation of…
The European Commission’s Sustainable Finance Action Plan introduces a range of legislative measures that will impact asset management firms making available financial products within the EU.
This is the September 2020 edition of our investment management update. This publication has been tailored to highlight topical news, cases and changes in the law impacting the investment management sector.
On August 26, 2020, the U.S. Securities and Exchange Commission (SEC) adopted amendments to the definitions of “accredited investor” in Rule 501(a) under Regulation D and “qualified institutional buyer” in Rule 144A under the Securities Act of 1933 (the “Securities Act”).[1] These amendments are intended to update and…
As the private equity (“PE”) and venture capital (“VC”) funds industry grows andmatures in Asia, managers are increasingly looking to market interests in theirfunds to U.S.-based investors. However, many Asia-based managers we speakwith are wary of marketing to U.S. investors because they are concerned about thecompliance…
Accounting decisions involve significant judgment. After all, US GAAP gives firms the discretion to choose among alternative accounting methods when it comes to inventory valuation, depreciation calculation, derivative accounting, etc. It also gives managers flexibility in recognizing and measuring contingent liabilities and…
Last Friday, the IRS and Treasury proposed regulations (the “Carried Interest Regulations”) on the taxation of carried interest under Section 1061 of the tax code. Section 1061was added to the tax code as part of the 2017 tax reform legislation and generally provides that capital gain allocated under certain carried interest…
Prior to the Global Financial Crisis, issuers of commercial mortgage-backed securities (CMBS) passed 100% of the risk to bondholders. After the GFC, the Dodd-Frank Act instituted new rules requiring that any institution securitizing a pool of commercial mortgages retain at least 5% of the bond. This risk retention is…
During the last months, the Covid-19 outbreak further proved the importance of the Solvency II regulatory framework. The market-consistent and risk based approach helped insurers to better align capital to risk, build-up resilience and enhance the risk management practices, while the adjustments included for long-term…
The European Securities and Markets Authority (ESMA), in accordance with EMIR, shall initiate and coordinate Union-wide assessments of the resilience of Central Counterparties (CCPs) to adverse market developments. This report presents the results of the third EU-wide CCP stress test exercise.
