AMIC Regulatory Update

Latest ICMA developments

On 21 August, amendments to the ICMA Primary Market Handbook were published. Regarding deal announcements, the changes made aim at condensing contents to fit better on trading screens and including prospectus hyperlink placeholder. For more information, see the ICMA Primary Market Handbook - Amendments/archive page.
On 1 September, AMIC submited its response to the ESAs' consultation on the Sustainable Finance Disclosure Regulation. In its response AMIC highlighted several challenges with the implementation measures proposed by the three European authorities, including both firm and product disclosure requirements. For instance, the proposed quantitative disclosure of asset management companies' ESG footprints would not only be of little relevance to investors who invest in products, but it will give them an inaccurate picture of the principal adverse impacts of assets under management (AUM), as many asset classes (sovereign bonds, green bonds, money markets and cash equivalents, currency, some commodities) cannot be evaluated against the proposed KPIs and given that this approach does not consider the materiality concept. In light of the expected delay in adopting the implementation measures and the scale of the issues to be resolved, AMIC once again urges the EC and the ESAs to postpone the application date of SFDR.
On 1 September, AMIC submited its response to the ESMA consultation on guidelines for NCAs when they consider potential financial stability risk associated with leverage in AIFs. The response recommends focusing on funds with substantial leverage as a first screening phase and  conducting an analysis of  relevant parameters related to a given fund. AMIC also calls to focus only on relevant potential risk transmission channels and suggests analysing funds individually and not in groups: similar AIFs may have leverage tolerance according to clients' profiles, dealing cycles and recent performances. Finally the response argues that the implementation of these guidelines should rely on data already reported under LST guidelines, AIFMD, EMIR, SFTR and should not lead to further reporting by asset managers.

On 4 September, AMIC Risk Management WG met to discuss the upcoming AIFMD review in the context on the recent ESMA letter on this matter.
Coming up next:
On 8 September, AMIC members are invited to discuss AMIC potential response to the EC consultation on research.
On 16 September, AMIC ExCom will held its quaterly meeting.



ICMA Asset Management and Investors Council (AMIC) Regulatory Update

Shareholder Identification

31 August ESMA publishes list of thresholds for shareholder identification

ESMA has published a document listing the thresholds above which shareholders can be identified in the various Member States of the European Union (EU).


31 August ESMA proposes to further postpone CSDR settlement discipline

ESMA has published a final report on draft regulatory technical standards (RTS) definitively postponing the date of entry into force of the Commission Delegated Regulation (EU) 2018/1229 (RTS on settlement discipline) until 1 February 2022.

Fund liquidity

24 August  FCA update on the LF Woodford Equity Income Fund

The FCA published an update on the capital distribution and accounting update on LF Equity Income Fund (formerly LF Woodford Equity Income Fund). 


27 August ESMA’s guidelines on MMFs stress test scenarios to be updated

ESMA has confirmed that the 2019 Guidelines on stress test scenarios under the Money Market Funds Regulation (MMFR) will be updated in 2020 to include a modification of the risk parameters to reflect recent market developments related to the COVID-19 crisis.

28 August The AMF confirms having requested the suspension of three French domiciled UCITS funds 

The Autorité des Marchés Financiers has confirmed having requested to the company the suspension of subscriptions and redemptions of units of three UCITS funds  to protect the interests of unit holders and the public.



28 August Transparent price formation in the fixed-income and derivatives market still leaves room for improvement

A study by the Dutch Authority for the Financial Markets (AFM) on the effectiveness of the MiFID II regulatory framework for the fixed-income and derivatives markets has shown price formation still needs to be more transparent. The MiFID II rules are also considered less suitable for the fixed-income markets. The AFM does, however, note a shift towards on-venue trading for bonds and derivatives.

1 September ESMA publishes call for evidence in the context of the review of transparency requirements for equity and non-equity instruments

ESMA has published a Call for Evidence in the context of its intention to review Commission Delegated Regulation (EU) No 2017/587 (RTS 1) and Commission Delegated Regulation (EU) No 2017/583 (RTS 2) starting from Q4 2020-Q1 2021. RTS 1 and RTS 2 contain the main implementing measures in respect of the MiFID II/MiFIR transparency regime for equity and non-equity instruments.


1 September Temporary permissions regime – Operational readiness

In a letter reminding for firms to be operationally prepared for the end of the transition period (due to end at 11pm on Thursday 31 December 2020) the PRA announced that it has updated and summarized on its webiste the approach to the Temporary Permissions Regime. 

Risk management

2 September ESMA sees high risk of decoupling of financial market performance and underlying economic activity

ESMA has published its second Trends, Risks and Vulnerabilities (TRV) Report of 2020. A webinar open to the public will be held on 9 September to present the report.

Securitisation Regulation

4 September ESMA confirms securitisation regulation requirements entry into force on 23 September 2020

ESMA has confirmed that the different elements of the new regime under the Securitisation Regulation (SR) will come into force on 23 September 2020.


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