ESMA Q&A on application of AIFMD

On 16 December 2016, ESMA published an updated questions and answers document (Q&A) on the application of the AIFMD to include one updated question and answer on reporting obligations by non-EU AIFMs under Article 42 of the AIFMD, clarifying the circumstances under which information on EU master AIFs should be reported to competent authorities.

MMF Regulation

The Economic and Monetary Affairs Committee (ECON) of the European Parliament approved the final compromise text on the EU’s Money Market Fund Regulation (MMFR). The Committee of Permanent Representatives of Member States to the EU (COREPER) also endorsed the text. The final agreement provides for a Public Debt CNAV MMF and a Low Volatility NAV (LVNAV) MMF, in addition to a VNAV MMF. The press release is here.

EMIR - risk mitigation techniques for uncleared OTC derivative contracts

On 15 December 2016, Commission Delegated Regulation ((EU) 2016/2251) supplementing EMIR with regulatory technical standards on risk mitigation techniques for uncleared OTC derivative contracts under Article 11(15) of EMIR was published in the Official Journal of the EU. The Delegated Regulation comes into force 20 days after publication (which is 4 January 2017).

Regulation amending EuVECA Regulation and EuSEF Regulation

On 16 December 2016, the Council of the EU published a press release announcing that it has agreed its negotiating stance on the proposed Regulation amending the European Venture Capital Funds Regulation (EuVECA Regulation) and the European Social Entrepreneurship Funds Regulation (EuSEF Regulation).

Anti-Money Laundering/Combating the Financing of Terror/Corruption

Compromise proposals on 5AMLD

The EU Council announced that it agreed its negotiating stance on the proposed Fifth Money Laundering Directive (5AMLD) which will amend 4AMLD. On 20 December 2016, the Permanent Representatives Committee, on behalf of the Council, asked the incoming presidency to start talks with the European Parliament.

The latest draft of the 5AMLD is dated 19 December 2016 and was listed at the end of the press release.

Previously, on 14 December 2016, the Presidency of the Council of the EU published its fourth compromise proposal on 5AMLD. The cover note states that amendments to the European Commission's 5AMLD legislative proposal are marked in underlined bold text and deletions are highlighted in strikethrough. On 25 November 2016, the Presidency of the Council of the EU had published its third compromise proposal on 5AMLD, with amendments to the first Presidency compromise proposal marked in underlined bold text and deletions highlighted in strikethrough.

The draft dated 19 December 2016 provides that the 5AMLD amendments to 4AMLD should be transposed by member states within 12 months of 5AMLD being published in the Official Journal of the EU. Member States must set up the central beneficial ownership registries for corporate entities within 24 months of 5AMLD entering into force (which is twenty days after it is published in the Official Journal of the EU) and for trusts within 36 months of 5AMLD entering into force.