ESMA consults on UCITS V: ESMA has published a consultation on draft technical advice to the Commission on depositary requirements under UCITS V.  UCITS V upgrades the duties and liabilities of UCITS depositaries by clarifying the safeguarding, oversight and cashflow monitoring functions. The paper addresses:

  • steps to be taken by a third party to whom safekeeping is delegated to ensure the assets it holds are available for insolvency distribution if it fails. ESMA's advice includes requiring the third party to verify that the legal system applicable to it recognises the separation of the UCITS' assets from the delegates and the UCITS' assets are not part of the third party's insolvency estate. It also places requirements on the delegate to keep up to date records of where the assets are and keep in place appropriate procedures to safeguard the UCITS' rights and minimise loss; and
  • the requirement that the management company and depositary act independently and solely in the interests of the fund and its investors. ESMA proposes measures that will ensure no member of one is also a member of the other, and to ensure there are no conflicting cross-holdings within a group structure.

ESMA asks for comments by 24 October and will present its advice to the Commission by the end of November. (Source: ESMA Consults on UCITS V)

ESMA updates AIFMD FAQs: ESMA has updated its list of questions and answers (FAQs) on the Alternative Investment Fund Managers Directive (AIFMD). New questions address reporting obligations to regulators and delegation of risk management or portfolio management. (Source: ESMA Updates AIFMD FAQs)

ESMA consults on EUVeCa and EUSEF: ESMA is consulting on technical advice it will need to provide to the Commission on implementing measures under the Regulations on EU Venture Capital (EUVeCA) and Social Entrepreneurship (EUSEF) funds. The paper considers:

  • types of goods and services, methods of their production and financial support embodying a social objective;
  • conflicts of interest;
  • methods for measuring social impact; and
  • information EUSEF managers should provide to investors.

ESMA asks for comment by 10 December and will provide advice to the Commission in April 2015. (Source: ESMA Consults on EUVeCa and EUSEF)

ESMA consults on securities eligible as funded credit protection: ESMA is consulting on draft RTS on  the main indices and recognised exchanges for the purpose of identifying equities, convertible bonds and debt securities that will be eligible as credit risk mitigating collateral under the Capital Requirements Regulation. ESMA asks for comments by 1 November. (Source: ESMA consults on securities eligible as funded credit protection)

ESMA delays EMIR report to Commission: ESMA has written to Michel Barnier explaining its plans to delay reports due to the Commission by the end of September under the European Market Infrastructure Regulation (EMIR). ESMA will postpone delivery so it can reflect in the reports its experience in authorising EU Central Counterparties (CCPs). (Source: ESMA Delays EMIR Report to Commission)