Funds Legal Update | 16 September 2019

Written on 17 Sep 2019

Welcome to our latest Funds Legal Update.

FCA implements material and notification changes for AIFM's under NPPR

On 9 September 2019, the FCA updated it's NPPR webpage by adding new forms regarding Regulation 57 Notifications. Full scope EEA AIFM's marketing AIF's under this regulation are required to submit notifications using the new forms and the online system, Connect. Full details of the changes have been published on the NPPR webpage.

HM Treasury publishes record of BoE's meeting to discuss its latest Financial Stability Report

On 4 September 2019, HM Treasury published a record of the meeting held between the Chancellor of the Exchequer and the Bank of England (BoE) Governor on 26 July 2019. In the meeting, Sajid Javid and Mark Carney discussed the BoE's latest Financial Stability Report, which was published on 11 July 2019.

Amongst other things, the meeting discussion covered the resilience of the UK financial system to Brexit, global risks and vulnerabilities in open-ended funds. The Financial Policy Committee (FPC) has highlighted these vulnerabilities for many years – the potential risks to financial stability become even greater the more important open-ended funds become and the more illiquid their underlying investments are.

Liquidity and stress testing in UCIT's and AIF's

On 2 September 2019, ESMA released its guidance on liquidity and stress testing in UCITs and AIFs which applies to fund managers, depositaries and national competent authorities (NCAs). The final report provides an overview of the feedback received by ESMA to its consultation in February this year. ESMA's guidelines are located in Annex III of the report and propose to increase the standard, consistency and frequency of testing and encourage the coming together of supervision by NCA's. Fund managers are expected to create liquidity and stress testing models

If you would like to discuss any of these developments, please get in touch with one of the experts listed below.