Global Regulatory Development – Page 3 – Global Investment Law Watch

United States: FinCEN Narrows the Final AML Requirements for Investment Advisers

Aug 30 2024

By: Richard F. Kerr and Jennifer L. Klass

On 28 August 2024, the Financial Crimes Enforcement Network (FinCEN) finalized regulations that add certain investment advisers (Covered Advisers) to the definition of a “financial institution” under the Bank Secrecy Act thereby requiring Covered Advisers to, among other things, establish anti-money laundering (AML) and counter-terrorist financing (CFT) programs and file Suspicious Activity Reports with FinCEN. The effective date of the new rules is January 1, 2026.

Europe: Central Bank of Ireland Changing Notification Procedure for UCITS and AIF Passporting Applications

Aug 29 2024

By: Gayle Bowen, Emma O’Dwyer, and Aoife Maguire

The Central Bank of Ireland (CBI) is changing the process for the submission of UCITS and AIF passport notifications and de-notifications.

United States: Form N-PORT and Form N-CEN Reporting; Guidance on Open-End Fund Liquidity Risk

Aug 29 2024

By: Jon-Luc Dupuy, Nicholas O. Ersoy, and Jordan A. Knight

On 28 August 2024, the United States Securities and Exchange Commission (SEC) adopted amendments to Rule 30b1-9 under the Investment Company Act of 1940, as amended, and Forms N-PORT and N-CEN (Final Rule). More specifically, the SEC adopted rule and form amendments that will: (1) require certain registered investment companies, including registered open-end funds, registered closed-end funds, and exchange traded funds organized as unit investment trusts but excluding money market funds, that report on Form N-PORT to file such reports on a monthly basis within thirty (30) days after the end of that month (rather than filing no later than sixty (60) days after the end of the fiscal quarter for the three (3) months in such quarter as currently required); and (2) amend Form N-CEN to require open-end funds to report certain information about service providers used to comply with liquidity risk management program requirements, among other technical amendments to the relevant rule and forms.

United States: The MNPI Is Coming From Inside the House

Aug 28 2024

By: Pablo J. Man and Lance C. Dial

On 26 August 2024, the SEC settled charges against an SEC-registered adviser for policies and procedures failures related to the misuse of material nonpublic information (MNPI) concerning its trading of collateralized loan obligations (CLOs). The adviser paid a US$1.8 million penalty.

Europe: FCA Amends Opening Date for Registration of New UCITS Schemes Under UK Overseas Fund Regime

Aug 23 2024

By: Emma O’Dwyer, Aoife Maguire, and Gayle Bowen

The UK’s Financial Conduct Authority has put back the opening date for the application gateway for recognition of new UCITS schemes (i.e. those schemes not already registered under the Temporary Marketing Permissions Regime) under the OFR.

Europe: Updated FCA Guidance on Registration for the UK Overseas Funds Regime

Aug 19 2024

By: Emma O’Dwyer, Aoife Maguire, and Hazel Doyle

On 12 August 2024, the UK’s Financial Conduct Authority released updated information on its website page on the Overseas Funds Regime (OFR). It provides details on how UCITS management companies (Operators) can register for FCA Connect – which is the first step for any Operator looking to register funds under the OFR. See our previous OFR-related blogs for more information on the OFR.

United States: CME Group Clarifies and Emphasizes the Duty to Supervise Trading on its Markets

Aug 09 2024

By: Clifford Histed and Cheryl Isaac

If you or your company trades on CME, CBOT, NYMEX or COMEX (CME Group exchanges, collectively referred to herein as “CME”), you will need to take note of CME’s new Market Regulation Advisory Notice (MRAN), which became effective on 16 July. The new MRAN is called “Supervisory Responsibilities for Employees and Agents” and should be reviewed closely to understand CME’s expectations related to diligent supervision, including policies, trainings, monitoring, remediation and sanctions.

United States: Child’s Play: Congress Proposes Allowing Sandboxes for AI Within the Financial Services Industry

Aug 07 2024

By Matthew J. Rogers and Maxwell J. Black

A bipartisan group in the US Congress has introduced legislation that aims to foster artificial intelligence (AI) innovation within the financial services industry by creating regulatory sandboxes. This new bill marks a significant step toward a unified, nationwide framework for regulating AI in the financial services industry.

Europe: ESMA’s Call for Evidence on the UCITS Eligible Assets Directive Closes

Aug 07 2024

By: Áine Ní Riain and Michelle Lloyd

The European Securities and Markets Authority (ESMA) has today closed its Call for Evidence (CfE) on the review of the UCITS Eligible Assets Directive (EAD).

Europe: European Commission Adopts Delegated Regulations for ELTIF 2.0 and Rejects Key Changes Proposed by ESMA

Jul 23 2024

By: Gayle Bowen and Shane Geraghty

The European Commission (EC) has adopted the long awaited ELTIF 2.0 Delegated Regulation (RTS). Its version rejects a number of key proposals previously introduced by ESMA. In particular, the EC has returned to its original versions of Annex I and Annex II, with minor amendments.

Category:Global Regulatory Development