India: SEBI publishes stewardship code

At the end of last month, SEBI published a circular containing a stewardship code for mutual funds and all categories of alternative investment funds, in respect of their investment in listed equities: see here. The circular also notes that SEBI, IRDAI and PFRDA are examining a proposal for more wide-reaching stewardship principles in India.

UK: Alternative Investment Fund Managers (Amendment) (EU Exit) Regulations 2019

The Alternative Investment Fund Managers (Amendment) (EU Exit) Regulations 2019 were made earlier this week and, when in force, will make significant changes to the Alternative Investment Fund Managers Regulations 2013. A copy of the Regulations, as made, is available here or here (pdf).

In very general terms, and quoting from the explanatory memorandum, the Regulations are designed to "...address deficiencies in retained EU law in relation to alternative investment fund managers arising from the withdrawal of the United Kingdom (UK) from the European Union (EU), ensuring the legislation continues to operate effectively at the point at which the UK leaves the EU .... This instrument relates to the Alternative Investment Fund Managers Directive 2011/61/EU (“AIFMD”), the regulatory framework in the EU for alternative investment funds managers...".

As made, the Regulations provide - in regulation 1(2) - that they come into force on exit day. However, regulation 1 has already been amended and is now in force. In amended form, regulation 1 now states that it and regulation 14 come into force on the day after the day on which the Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019 were made (they were made on February 19). It was regulation 58 of the latter Regulations that made this amendment to regulation 1. Regulation 14 of the AIFM (Amendment) (EU Exit) Regulations 2019 contains various transitional provisions, including temporary marketing permissions and associated powers for the Financial Conduct Authority.

For further information about the Regulations, see the accompanying explanatory memorandum (here, pdf) and impact assessment (here , pdf).

UK: The Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019

The Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019 were made earlier this week: see here or here (pdf). Regulations 50(6), 58 and 61 to 71 are now in force; the remaining regulations come into force on exit day. The Regulations are accompanied by an explanatory memorandum and an impact assessment: see, respectively, here (pdf) and here (pdf). To quote directly from the explanatory memorandum (paras. 2.2 and 2.3):

A collective investment scheme is a fund that several people contribute to. It is managed by a fund manager who will invest the pooled money into one or more types of assets. This instrument will continue the standards as set out by the UCITS Directive (2009/65/EC) to maintain common standards for investor protection for UCITS. 

This instrument will also amend the commencement provisions in the Alternative Investment Fund Managers (Amendment) (EU Exit) Regulations 2019".

Note: the Alternative Investment Fund Managers (Amendment) (EU Exit) Regulations 2019 have not yet been made - as far as I can tell - but were published in draft form last year and approved last month: see here.

Update (21 February 2019) - shortly after adding the above note, the UK Legislation website was updated and now includes a copy of the Alternative Investment Fund Managers (Amendment) (EU Exit) Regulations 2019: see here. These Regulations were made on the same day as the Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019.

Europe: ESMA Guidelines on remuneration policies and practices (MiFID)

The European Securities and Markets Authority has published its final report Guidelines on remuneration policies and practices (MiFID): see here (pdf). The purpose of the guidelines is to ensure the consistent and improved implementation of the existing MiFID conflicts of interest and conduct of business requirements in the area of remuneration.

UK: Transposition of the Alternative Investment Fund Managers Directive

The Government has published its response in respect of the consultation that took place earlier this year regarding the transposition of the Alternative Investment Fund Managers Directive: see here (pdf). A copy of the Alternative Investment Fund Managers Regulations 2013 has also been published - see here (pdf) - together with a set of questions and answers: see here (pdf).

Europe: ESMA's AIFM Directive rules

The European Securities and Markets Authority has published its final advice on the detailed rules underlying the Alternative Investment Fund Managers Directive: see here. The purpose of ESMA's proposed rules is to establish a comprehensive framework for alternative investment funds, their managers and depositaries.

Europe: the Alternative Investment Fund Managers Directive

Political agreement has been reached by the European Parliament and the Council of Ministers on the text of the Directive on Alternative Investment Fund Managers: see here. FAQs are available here. The text of the Directive adopted by the European Parliament is available here.

Europe: the alternative investment fund managers directive

At a meeting of the Economic and Financial Affairs Council yesterday a mandate was agreed for negotiations with the European Parliament on the alternative investment fund managers directive. The purpose of the directive is twofold:

• to introduce a harmonised framework for monitoring and supervising the risks that alternative investment funds (e.g., hedge funds) pose to their investors, counterparties, other market participants and to financial stability
• allowing alternative investment fund managers to provide services and market EU funds throughout the EU single market, subject to compliance with strict requirements.

Further information about the agreed mandate is available here (pdf). The press conference can be watched here. On Monday, MEPs on the Economic and Monetary Affairs Committee agreed their position with regard to the proposed directive: see here. Interestingly, the MEPs agreed that naked short selling should be prohibited. Short selling is one of the matters currently being considered by the European Commission as part of its work on financial regulation.