Latest ICMA developments
AMIC held on 18 June its first virtual event "First lessons of the COVID-19 crisis for the asset management industry". A recording of panel is available here.
On the 15th June, ICMA’s ERCC has submitted its response to the ESMA consultation on its First Report on Central Clearing Solutions for Pension Scheme Arrangements. The ERCC has limited its response to the Questions related to Section 6.3 of the report: The market-based repo solution.
AMIC Sustainable Finance WG and Risk Management WG will held a join meeting on 22 June to discuss the EC consultation on 6 delegated acts on the integration of sustainability risks into UCITS, AIFs, investment firms, insurance firms and brokers, reinsurance firms, and product governance obligations.
ICMA Asset Management and Investors Council (AMIC) Regulatory Update
16 June 2020 ESMA appoints a new securities and markets stakeholder group
ESMA has published the new list of members of its Securities and Markets Stakeholder Group (SMSG) following approval by its Board of Supervisors. The selected individuals begin a four-year term on 1 July 2020. The SMSG will provide ESMA with advice on its policy work and must be consulted on technical standards, guidelines and recommendations. ICMA's Chief Executive, Martin Sheck, was reappointed as member of the SMSG.
10 June 2020 Reporting instructions under Article 37 of the Money Market Funds Regulation
The CSSF confirmed the delay for reporting under Article 37 of the Money Market Funds Regulation.The reference period for the first reporting remains however Q1 2020 but the submission to National Competent Authorities of the quarterly reportings for Q1 and Q2 2020 is postponed to September 2020. As mentioned in the press release dated 2 April 2020, submission of the reportings before the September deadline is encouraged. The CSSF implements the amended XML schema with the transmission channels and will issue a separate communication once reporting entities may use the amended XML schema to provide the reporting files in line with ESMA new reporting instructions.
12 June 2020 Commission consults on EU Green Bond Standard on Sustainable Finance
The European Commission has launched a targeted consultation on the establishment of an EU Green Bond Standard (GBS), which will be open until Friday 2 October 2020.
15 June 2020 Investing with SDG outcomes: new PRI report
The United Nations-supported Principles for Responsible Investment (PRI) released a new report on Investing with SDG Outcomes providing signatories, including investors representing $100 trillion in assets under management, with a new high-level framework of investor actions to shape outcomes in line with the UN’s SDGs.The report argues that investors can look beyond financially material environmental, social and governance (ESG) issues, and consider taking on societal and environmental issues on a systemic level as part of their investment strategies, and wider collaborative actions, to support achievement of the SDGs by 2030.
16 June 2020 UNDP launches standards for bond issuers and private equity funds seeking SDG impact
The United Nations Development Programme (UNDP) has released for consultation Standards to guide private equity fund managers and bond issuers in directing activities toward achieving the globally agreed Sustainable Development Goals (SDGs). These Standards are the latest contribution of market-focused tools from SDG Impact, a flagship initiative of UNDP’s Finance Sector Hub, focused on accelerating investment to achieve the SDGs. The Standards will be available for comment and consultation through 31 July 2020.
18 June 2020 The Bank of England’s climate-related financial disclosure 2020
The Bank has published its own climate-related financial disclosure for the first time in June 2020 which sets out the Bank’s approach to managing the risks from climate change across its entire operations.
17 June 2020 Speech by Deputy Governor Sharon Donnery on Risks, Resilience and Policy Responses to COVID-19
Speech by Sharon Donnery about the macro financial environment in Ireland amid Covid-19, the risks to Irish financial stability, both domestic and international: " (...) The investment fund sector globally saw large redemptions in March, and the subsequent “dash for cash” - especially dollars - put significant pressure on other markets, markets that had previously been seen as safe and liquid. This tightening of global financial conditions was partly mitigated by central bank interventions. Over time, the question over the extent to which structural vulnerabilities from liquidity mismatches and leverage in the global funds sector contributed to market disruption will need to be addressed."
15 June 2020 ESMA publishes 2019 annual report and updates 2020 annual work programme
ESMA has published its Annual Report, which reviews the achievements from 2019 and an update of its annual work programme. Regarding investment management, the key 2020 objectives are to "(1) Achieve greater convergence and consistency of NCAs’ supervisory approaches and practices in relation to the EU legislation on investment 23 management, with a particular focus on the cost and performance of retail investment products. (2) Contribute to improving financial stability through ESMA’s fund stress simulation framework and guidelines on stress test scenarios".
18 June 2020 BoE increases its asset purchase programme
Our MPC has voted unanimously to maintain Bank Rate at 0.1% and to continue with the existing programme of £200 billion of UK government bond and sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves. The Committee voted by a majority of 8-1 to increase the target stock of purchased UK government bonds, financed by the issuance of central bank reserves, by an additional £100 billion, to take the total stock of asset purchases to £745 billion.