Legal & Regulatory
Luxembourg’s alternative landscape is flourishing. ALFI and its members are eagerly awaiting the introduction of a new AIFMD compliant fund regime – the so called “RAIF”.
Capital Markets Union (CMU): a single capital market in the interest of investors
ALFI is monitoring very closely the development of the CMU and its impact on the investment fund sector. This initiative notably seeks to create new cross border investment opportunities for investors and to promote venture capital and infrastructure investment vehicles.
The European Long-Term Investment Fund (ELTIF) was created by the EU to help encourage sustainable growth. The ELTIF regulation became applicable in December 2015. The ALFI ELTIF WG has been working on a FAQ, which is providing members with useful considerations when considering setting up such a fund.
FATCA, CRS, BEPS
2015 has been the year “par excellence” for automatic exchange of information with the entry into force and application of FATCA between the US and Luxembourg on the one hand and, the implementation of Common Reporting Standard with regards mandatory automatic exchange of information at EU level and subsequently in Luxembourg as from 1 January 2016 on the other hand. 2015 has also been the year of the release of OECD final reports on the 15 BEPS Actions with ALFI focussing, in particular, on BEPS Action 6 “Preventing the Granting of Treaty Benefits in Inappropriate Circumstances” and its impacts on treaty access of investment funds. More follow-up work on BEPS Actions is expected in 2016.
MiFID II – a new distribution paradigm?
Investor protection and transparency are at the heart of MiFID II which will have practical impacts on fund manufacturers and distributors. ALFI has been accompanying its members in understanding the implications of the Directive for their business.
As from 31 December 2016, UCITS and AIF management companies may need to provide a PRIIPs KID or PRIIPs KID compliant information to their investors and distributors. ALFI and EFAMA are working together on the practicalities of this move.
The Solvency II regime came into force on 1st January 2016. ALFI organised a free member seminar in February that focused primarily on reporting obligations under the Solvency II Directive to help members understand of a standard template used in the asset management industry.
ALFI published the third edition of its Swing Pricing Guidelines and a second Swing Pricing Survey in December 2015. Timing was perfect, as the survey and the guidelines were published prior to the end of the consultation on this topic by the US regulator, the SEC.
T2S will change the European settlement landscape in a very radical way. T2S will provide an integrated operational environment. With T2S there will be a single set of rules and standards for all transactions across Europe. ALFI continues to assess and explain the implications for its members.