Latest ICMA developments
On 16 September, AMIC's Executive Committee held its third quarterly meeting. Ursula Bordas, Senior Expert on Consumer Protection at EIOPA, discussed the upcoming implementation measures of the Sustainable Finance Disclosure Regulation. The recent AMIC policy work including on sustainable finance (SFDR RTS, integration of sustainability risks in UCITS/ AIFMD and ESG preferences in MiFID), risk management (ESMA consultation on leverage guidance, AIFMD review) and Capital Markets Union (MiFID research rules review) were also discussed.
Coming up next:
On 22 September, the AMIC Risk Management WG will meet to discuss AMIC's draft position paper on the upcoming AIFMD review.
ICMA Asset Management and Investors Council (AMIC) Regulatory Update
14 September ESMA SMSG Advice to the ESAs regarding the Sustainable Finance Disclosure Regulation (SFDR)
ESMA Securities and Markets Stakeholder Group (SMSG) published its advice to the ESA’s Joint Consultation Paper on SFDR draft RTS . The SMSG worries that the neither the timings nor the concepts of the different pieces of legislation (Taxonomy, NFRD) are fully synchronized or aligned with one another and suggests a phased approach with regard to the SFDR draft RTS.
14 September $890 million Sustainable Development Goals Bond issued by Mexico
Mexico has become the first country in the world to issue a Sovereign Sustainable Development Goals (SDGs) Bond. The transaction reached a demand of USD 5,696 million, equivalent to 6.4 times the allocated amount. 267 global investment firms participated in the operation.
16 September EU green recovery and new emissions reduction target
EC President von der Leyen announced in its State of Union speech the EC's intention to amend the proposed European Climate Law, to include the 2030 emissions reduction target of at least 55% as a stepping stone to the 2050 climate neutrality goal. It also announced its intention to raise 30% of its €750 billion stimulus borrowing via green bonds.
16 September European long-term investment funds review
The EC confirmed its intention to consult on the review of the ELTIF regulation in Q4 2020 and issue a legal proposal in Q2 2021 with the aim to address the following issues: (1) the supply side issues mainly related to the eligible assets and other investment rules (2) barriers to to investment primarily focused on retail distribution rules.
16 September Fed keeps rates on hold
The Fed decided to keep the target range for the federal funds rate at 0 to 0.25 % and expects it will be appropriate to maintain this target range until labor market conditions have reached levels consistent maximum employment and inflation has risen to 2% and is on track to moderately exceed 2% for some time.
17 September BoE keeps rates on hold
The Bank of England voted unanimously to maintain Bank Rate at 0.1% and continue with its existing programmes of UK government bond and sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, maintaining the target for the total stock of these purchases at £745 billion.
17 September ESMA renews its decision requiring net short position holders to report positions of 0.1% and above
ESMA has renewed its decision to temporarily require the holders of net short positions in shares traded on a European Union (EU) regulated market to notify the relevant national competent authority (NCA) if the position reaches or exceeds 0.1% of the issued share capital. The measure applies from 18 September 2020 for a period of three months.
Money Market Funds
11 September AMF complies with the ESMA guidelines on reporting to competent authorities on money market funds
The AMF has updated its position DOC-2018-05 to include ESMA’s requirements for reporting to competent authorities under Article 37 of the Money Market Fund Regulation.