Dear All,


ICMA/AMIC activities

The AMIC Secretariat has circulated this week a draft paper on fund liquidity to our Risk Management working group (deadline for comments on 3 October and an invitation to the next meeting on 10 October between 15-17 BST at ICMA office in London) and sent an invitation for the next meeting of our Primary Market working group (10 October between 10-12 BST at ICMA office in London).

The next AMIC conference will take place on 27 November in London and will be hosted by BlackRock. The conference will feature Mario Nava, DG FISMA, as a keynote speaker on the topic of CMU, followed by panel discussions led by industry practitioners on the development of the STS Securitisation market, the pension gap, PEPP and the effect of negative interest rates and a discussion on the possibility of an EU Ecolabel for funds.
All market participants are welcome to attend for free however registration in advance is essential, please use the link above to register. 

Upcoming ICMA Courses

  9-11 October: Introduction to Fixed Income Qualification (IFIQ) 
14-15 October: ICMA Training Course: Introduction to Green Bonds
14-15 October: Securitisation: An Introduction 



Fund liquidity

  • (16.09.2019) ESMA calls to be cautious regarding potential changes to fund liquidity rules 

In an interview to the FT, Steven Maijoor, chairman of the European Securities and Markets Authority:“We need to be careful about the suggestion that Ucits has to be changed [in response to the problems that have emerged at Woodford Investment Management]. It is important to emphasise that Ucits already establishes the principle that funds must be able to comply, at any time, with the obligation to redeem investors upon request”. 

  • (16.09.2019) FCA's Bailey calls on EU to offer more equivalence permits

UK Financial Conduct Authority chief executive Andrew Bailey has called on EU regulators to issue more equivalence permits to ensure long-term access to equities and derivatives trading facilities in London in the event of a no-deal Brexit. 
He flags in particular seven remaining areas of concern: the share trading obligation, the derivatives trading obligation, clearing, uncleared derivatives, data exchange,  progress on contract repapering and retail financial services preparation.

Investment research

  • (19.09.2019) FCA finds MiFID II research unbundling rules working well for investors

The Financial Conduct Authority (FCA) has published multi-firm review findings indicating the Markets in Financial Instruments Directive’s (MiFID II) research unbundling rules have improved asset managers’ accountability over costs, saving millions for investors.

The FCA’s review found that, following MiFID II, most asset managers have chosen to pay for research from their own revenues, instead of using their clients’ funds. Firms have also improved their accountability and scrutiny of both research and execution costs, including where firms have chosen to charge research costs to clients. This has resulted in investors in UK-managed equity portfolios saving around £70m in the first six months of 2018 across a sample of firms.

The review and analysis also found that:
-since the introduction of the reforms, budgets set by firms to spend on research have fallen on average by 20%-30%
-despite these budget reductions, most asset managers said they are still getting the research they need
-research coverage of small and medium enterprises (SMEs) listed in the UK has not seen a material reduction to date, and
-research pricing is still evolving, with wide price ranges being offered by brokers and independent providers

Detailed findings in relation to asset managers’ approaches to valuing research, and the FCA’s expectations as to how certain activities, such as trade association events, research marketing and consensus forecasts, interact with the new rules can be found within the multi-firm review report.

The FCA will continue to monitor both competition impacts and research coverage of SMEs following the MiFID II reforms by analysing market data and other reviews, such as the European Commission’s forthcoming study.

The FCA also intends to carry out further work in this area in 12 to 24 months’ time to assess firms’ ongoing compliance with our rules.

  • (19.09.2019) CFTC calls on ESMA to clarify CCP oversight plans

US Commodity Futures Trading Commission member Dawn Stump is seeking better coordination and clarity from the European Securities and Market Authority concerning its plans to extend jurisdiction to third country central counterparties: "(...) ESMA has proposed fourteen “indicators” that it would use to assess whether a third country CCP is systemically important or likely to become systemically important for the financial stability of the European Union or one or more of its Member States. I am concerned that these indicators are subjective, qualitative, and confer overly broad discretion on ESMA. These indicators would make it difficult for market participants and regulators alike to anticipate which third country CCPs will fall within ESMA's remit".

Kind regards,


The AMIC Secretariat



Tel: +44 20 7213 0348



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