Compliance & Regulatory Alerts, Updates and Insights...

Here are the topics discussed:

• ASIC Proposes October Expiry Date for Managed Investment Scheme Legislative Instrument
• ASIC and APRA Issue Final Rules and Information for the Financial Accountability Regime
• 334 Institutional Investors Commit to Japan’s Stewardship Code
• 26 ESG Evaluation and Data Providers Endorse Code of Conduct
• HKMA and SFC Welcome PBoC’s New Measure on Northbound Swap Connect Margin Collateral
• ESMA Consults on Revised CSDR Framework
• ESMA Consults on Revised CSDR Framework
• ESMA Initiates Consultations on MiFIR Review
• Court Sets Dates for 'Finfluencer' Trials
• Luxembourg's DORA Law Published in Official Journal
• Thematic Review on Management of Clients' Uninvested Funds by CIFs

ASIC Proposes October Expiry Date for Managed Investment Scheme Legislative Instrument

ASIC proposes allowing the legislative instrument for managed investment schemes to expire on 1 October 2024. This means entities will no longer rely on it. Key provisions include obtaining necessary regulatory approvals, protecting members' land use rights, securing registered interests, and ensuring payment obligations are met. ASIC is seeking feedback by 9 August 2024 on whether these provisions are still necessary.

For more details, visit the ASIC media release.

ASIC and APRA Issue Final Rules and Information for the Financial Accountability Regime

ASIC and APRA have issued the final rules and guidance for the Financial Accountability Regime (FAR), which will apply to insurers and superannuation trustees from 15 March 2025. The new package includes updated regulator rules, a summary of consultation feedback, and guidance materials to help entities comply with FAR obligations. This aims to enhance risk governance and accountability among APRA-regulated entities.

For more details, visit the ASIC media release.

334 Institutional Investors Commit to Japan’s Stewardship Code

The Financial Services Agency (FSA) of Japan announced that, as of June 30, 2024, 334 institutional investors have signed up to the Principles for Responsible Institutional Investors (Japan’s Stewardship Code). This code encourages investors to engage in sustainable growth through responsible investment and dialogue. The list of signatories includes trust banks, investment managers, insurance companies, pension funds, and other service providers.

For more details, visit the FSA news release.

26 ESG Evaluation and Data Providers Endorse Code of Conduct

The Financial Services Agency (FSA) of Japan announced that as of June 30, 2024, 26 ESG evaluation and data providers have endorsed the "Code of Conduct for ESG Evaluation and Data Providers." This initiative aims to enhance the transparency and reliability of ESG evaluations and data, promoting responsible investment practices.

For more details, visit the FSA news release.

HKMA and SFC Welcome PBoC’s New Measure on Northbound Swap Connect Margin Collateral

The Hong Kong Monetary Authority (HKMA) and the Securities and Futures Commission (SFC) welcome the People's Bank of China's (PBoC) new measure allowing offshore investors to use onshore bonds as margin collateral for Northbound Swap Connect transactions. This aims to reduce liquidity costs, enhance capital efficiency, and promote market participation.

For more details, visit the HKMA press release .

ESMA Publishes 2024 ESEF Reporting Manual

The European Securities and Markets Authority (ESMA) has released the 2024 update of its ESEF Reporting Manual. This update aims to support a harmonized approach for preparing annual financial reports, providing technical improvements and guidance to facilitate data analysis and comparison. The manual includes recommendations for tagging, anchoring extension elements, improving readability, and using unique identifiers for tagged facts.

For more details, visit the ESMA announcement .

ESMA Consults on Revised CSDR Framework

The European Securities and Markets Authority (ESMA) has launched consultations to recalibrate and clarify the Central Securities Depositories Regulation (CSDR). The consultations focus on information requirements for EU and third-country CSDs, as well as the scope of settlement discipline. Stakeholders are invited to respond by 9 September 2024. This initiative aims to enhance the CSDR framework's effectiveness.

For more details, visit the ESMA announcement .

ESMA Initiates Consultations on MiFIR Review

The European Securities and Markets Authority (ESMA) has launched new consultations on MiFIR to enhance market transparency, reduce reporting burdens, and promote supervisory convergence. The consultations cover amendments to liquidity assessments, equity transparency, systematic internalisers, the equity Consolidated Tape Provider, and post-trade transparency for non-equity instruments. Comments are due by 15 September 2024 and 15 October 2024, depending on the section.

For more details, visit the ESMA announcement .

Court Sets Dates for 'Finfluencer' Trials

The Financial Conduct Authority (FCA) announced trial dates for individuals charged in connection with an unauthorized foreign exchange trading scheme promoted on social media. Plea hearings were held on 11 July 2024, with trials set for 1 February and 15 March 2027 at Southwark Crown Court. The defendants face charges related to unauthorized financial promotions and providing unapproved investment advice.

For more details, visit the FCA press release .

Luxembourg's DORA Law Published in Official Journal

The CSSF has issued a reminder to financial entities regarding the upcoming applicability of the DORA law from January 17, 2025. Financial entities are urged to ensure compliance with DORA requirements and are encouraged to frequently visit this site for updated publications and relevant information.

For more details, visit the CSSF publications.

Thematic Review on Management of Clients' Uninvested Funds by CIFs

CySEC views this initiative not only as a means to ensure compliance with Law 87(I)/2017 but also as a step toward enhancing investor protection in line with CySEC’s objectives. The objective of this review is to evaluate the procedures CIFs follow in managing clients' uninvested funds to ensure adherence to regulatory requirements.

For more details, visit the CYSEC latest circulars.

Disclaimer

The information provided in this discussion is for informational purposes only and does not constitute legal, financial, or professional advice. Please refer to the full regulatory texts and guidelines for detailed information and consult with a qualified professional for specific advice tailored to your situation.