AMIC Regulatory Update

Latest ICMA developments

29 July 2020: ICMA, along with ISDA, ISLA, LBMA, UK Finance, Association of German Banks (BdB), AFMA  and  International Islamic Financial Market, have jointly submitted a letter to policy-makers asserting their commitment to defining and promoting the development of a digital future for financial markets. 
7 August 2020: AMIC published its bi-weekly COVID-19 market update podcast in which Robert Parker, Chairman of AMIC, reviews the market events of the last two weeks, in light of the publication of most recent economic indicators, central banks' policy outlook, and  the performance of different asset classes.

Coming up next
25 August 2020: AMIC Sustainable Finance Working Group will meet to finalise its response to the ESAs consultation on ESG Disclosure.
27 August 2020: AMIC Sustainable Finance Working Group will meet to finalise its response to the ESMA consultation on draft guidance to address leverage risks in AIFs



ICMA Asset Management and Investors Council (AMIC) Regulatory Update

Central banks

5 August ECB consults on its Strategy Review

As part of the strategy review, the ECB wants to hear opinions from across Europe, including those from citizens, academics, Members of the European Parliament and civil society organisations (deadline of consultation: end of October). The aim of the ECB’s strategy review has been to make sure our monetary policy strategy is fit for purpose, both today and in the future.The strategy review covers all aspects of our monetary policy, within the framework of our mandate which is to maintain price stability.

28 July ESMA is preparing a new RTS to further postpone CSDR settlement discipline

ESMA has been working on a proposal to possibly delay the entry into force of the CSDR settlement discipline regime until 1 February 2022. This is due to the impact of the COVID-19 pandemic on the implementation of regulatory projects and IT deliveries by CSDs and came as a request from the European Commission.

AIFMD review

23 July ESRB calls to review AIFMD

In its annual report ESRB makes a series of policy recommendations including on margins and haircuts, CCP regulatory framework, Solvency 2 and AIFMD. Concerning AIFMD, the ESRB reiterates the points made in a letter sent to the EC on 3 February 2020 regarding: (1) the suitability of the reporting framework and access to data for monitoring systemic risk; (2) the need to operationalise existing macroprudential policy instruments and (3) the ongoing development of the macroprudential policy framework beyond the banking sector and for investment funds.

29 July ESMA publishes its ELTIF register
Pursuant to the ELTIF Regulation, ESMA has published a central public register identifying each ELTIF authorised under this Regulation, the manager of the ELTIF and the competent authority of the ELTIF. Only 27 ELTIF funds appear to be registered at this stage.
Fund liquidity

29 July FSB publishes peer review on macroprudential policy framework and tools in Germany

The Financial Stability Board (FSB) has published its Peer Review of Germany. The review examines progress with data collection for macroprudential analysis and the availability and use of macroprudential tools in Germany; and how the authorities assess and manage risks to financial stability from non-bank financial intermediation (NBFI). Notwithstanding the progress observed, the review concludes that further steps can be taken to strengthen the macroprudential framework including providing guidance on the use of liquidity risk management and pricing tools for investment funds, particularly in stressed market conditions.

30 July The AMF releases a study on liquidity management tools and their implementation in French funds

The released study, the product of combined work by the AMF & the Banque de France, first describes the different tools authorized under the existing regulatory framework in France. Secondly, the study checks which tools are actually available to fund managers, thanks to an original textual analysis computer program which was run, scanning about 9,800 prospectuses.

3 August FCA consults on new rules to improve open-ended property fund structures

The FCA is consulting on a new proposal to reduce the potential for harm to investors from the liquidity mismatch in open-ended property funds. The new rules proposed would require investors to give notice – potentially of up to 180 days - before their investment is redeemed.


23 July ESRB: Analysis of large-scale corporate bond downgrade scenario

The ESRB published a technical note summarising the findings of a top-down analysis that attempts to quantify the impact of a mass bond downgrade scenario on the financial system. Recent estimates by the ECB and the ESRB place the likely amount of BBB-rated non-financial corporate bonds that could be downgraded at between €110 billion and €132 billion.

30 July EBA sees first impact of COVID-19 materialising in EU banks’ Q1 data

EBA has published its quarterly Risk Dashboard together with the results of the Risk Assessment Questionnaire (RAQ). The updated data shows that the impact of COVID-19 was mainly reflected in a contraction of banks’ capital ratios and profitability, the cost of risk increased, whereas non-performing loans (NPL) ratios remained stable, confirming that the impact of the pandemic on asset quality can be delayed. 

30 July EIOPA Financial Stability Report July 2020

EIOPA estimates in its Financial Stability Report that the COVID-19 outbreak further proved the importance of the Solvency II regulatory framework. The market-consistent and risk based approach helped insurers to better align capital to risk, build-up resilience and enhance the risk management practices, while the adjustments included for long-term guarantees allowed to partially mitigate market volatility caused by COVID-19.
Sustainable Finance

28 July Overview of the main provisions of the draft RTS currently undergoing consultation related to the Disclosure Regulation

The AMF is providing in a note a number of key insights on the consultation of the European Supervisory Authorities (ESAs) on the draft RTS related to the Disclosure Regulation. The draft RTS sets out a number of transparency requirements imposed on market participants, at entity level as well as on the products they market, regarding the taking into account of sustainability factors in their investment decisions and/or in the advice they provide.


28 July ESMA updates transparency opinions for 3rd country venues

ESMA has updated the list of third-country venues (TCTV) in the context of the opinion on post-trade transparency under MiFIR, following new requests from the industry.

6 August ESMA agrees position limits under MiFID II

ESMA has published twelve opinions on position limits regarding commodity derivatives under the Markets in Financial Instruments Directive and Regulation (MiFID II/MIFIR).

Engagement opportunities

30 July  EC Technical Expert Stakeholder Group on SMEs (TESG)

The EC has invited applications with a view to selecting members of the Technical Expert Stakeholder Group on SMEs (TESG).TESG will bring together relevant stakeholders with technical expertise to monitor and assess the functioning of SME Growth Markets, as well as provide expertise and possible input on other relevant areas of SME access to capital markets.

4 August ESMA is seeking secondary market experts to join its consultative working group

ESMA has opened the call for expression of interest to renew the composition of the Consultative Working Group (CWG) of the ESMA Secondary Markets Standing Committee (SMSC). Experts are asked to send their application by 14 September. The members of the CWG are selected for a two-year renewable term.


29 July CSSF statistics: undertakings for collective investment at the end of June 2020

As at 30 June 2020, the total net assets of undertakings for collective investment measured by the CSSF amounted to EUR 4.585,196 billion compared to EUR 4.483,233 billion as at 31 May 2020, i.e. an increase of 2,27% over one month. Over the last twelve months, the volume of net assets rose by 3,94%. The Luxembourg UCI industry thus registered a positive variation amounting to EUR 101,963 billion in June. This increase represents the sum of positive net capital investments of EUR 36,447 billion (+0,81%) and of the positive development of financial markets amounting to EUR 65,516 billion (+1,46%).


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