Regulatory Blog

On 25 October 2024, the EU Commission released the final Delegated Regulation that supplements Regulation (EU) 2015/760 of the European Parliament and the Council, which pertains to regulatory technical standards known as the "ELTIF RTS." The regulation outlines critical requirements for European Long-Term Investment Funds, particularly concerning the matching of transfer requests, pricing, investor disclosures, and asset valuations.

The Hong Kong Securities and Futures Commission’s new Fund Authorisation Simple Track is a streamlined process for authorising simple funds from Funds in Mutual Recognised jurisdictions. The process will begin as of 4 November 2024.

On 26 September 2024, the Cyprus Securities and Exchange Commission issued a circular addressed to Cyprus Investment Firms providing essential guidance regarding the provision of services in relation to fractional shares under the Investment Services and Activities and Regulated Markets Law 2017, in line with EU Directive 2014/65.

As a reminder, on 28 March 2024, Luxembourg’s Commission de Surveillance du Secteur Financier issued Circular 24/856 providing comprehensive guidelines for the protection of investors in cases of errors related to the Net Asset Value calculation, non-compliance with investment rules and other administrative errors at the level of Undertakings for Collective Investment under the supervision of CSSF. An English version of the circular has recently been released.

On 8 July 2024, the European Securities and Markets Authority initiated a consultation on draft guidelines and technical standards under the revised Alternative Investment Fund Managers Directive and the Undertakings for Collective Investment in Transferable Securities Directive. These directives aim to enhance financial stability and standardise liquidity risk management across the investment funds sector.

The revised European Long-Term Investment Fund Regulation mandates the European Securities and Markets Authority to develop draft Regulatory Technical Standards addressing various aspects such as compatibility of ELTIF's life with asset life cycles, redemption policy features, costs disclosure, and other criteria related to financial derivative instruments and asset disposal.

On 26 March 2024, Directive (EU) 2024/927 amending the Alternative Investment Fund Managers Directive 2011/61/EU and the Undertaking for Collective Investment in Transferable Securities Directive 2009/65/EC was published in the Official Journal of the European Union.

On 29 March 2024, Luxembourg’s Commission de Surveillance du Secteur Financier issued Circular CSSF 24/856, replacing Circular CSSF 02/77.

On 1 January 2024, the European Commission announced the entry into effect of its “Pillar 2” regime establishing a 15 per cent minimum effective taxation for large multinational companies in EU Member States.