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Express, the ALFI podcastALFI, has launched EXPRESS: The ALFI Podcast, a portal to fund industry insight and expertise. The weekly podcasts, which are only a few minutes long, will offer listeners unique insight from industry leaders on important topics and themes affecting the global fund industry. Please note that the views and opinions expressed are the speakers own and do not reflect necessarily those of ALFI. Episode 1: Flood of regulation by Rafik Fischer Episode 2: Success story of the Luxembourg fund industry by Jean Hamilius Episode 3: Investor's protection by Jella Benner-Heinacher To subscribe to Express, please send an email to registrations@alfi.lu Back to top European Commission: Tackling double taxation for a stronger Single MarketOn 11th November 2011, the European Commission adopted a communication on double taxation. This Communication highlights where the main double taxation problems lie within the EU, and outlines concrete measures that the Commission will take to address them. In doing so, the Commission seeks to remove real obstacles to a more competitive economy and make the EU easier to invest and do business in. As an immediate first step to strengthen existing legislation against double taxation, the Commission also adopted today a simultaneous proposal to improve the Interest and Royalties Directive. This aims to reduce the instances of one Member State levying a withholding tax on a payment, while another Member State taxes the same payment. Other areas in which the Commission intends to propose specific solutions to double taxation problems include cross-border inheritance tax in the near future and dividends paid to portfolio investors later on. With regard to double non-taxation, which causes considerable losses to public revenues, the Commission will launch a consultation to gauge the full scale of the problem. On the basis of this consultation, it will determine the most appropriate and effective measures to prevent double non-taxation and come forward with solutions next year. Press release Proposal for a Directive Impact assessment Back to top Review of the Markets in Financial Instruments DirectiveThe European Commission has published the legislative proposals to revise the Markets in Financial Instruments Directive (MiFID). The proposals consist of a Regulation and a Directive and are designed to make financial markets more efficient, resilient and transparent, as well as to enhance investors’ protection. In addition, the new framework will increase the supervisory powers of regulators and provide clear operating rules for all trading activities. Please download a note covering the main aspects of the proposed legislative package here. Directive Regulation Press release Back to top Market Abuse ReviewThe European Commission has published its legislative proposals which revise the Market Abuse Directive. The proposal consists of a Regulation and a Directive. The new framework is designed, among other things, to: - adapt the EU rules to the new market reality, in particular by extending their scope to financial instruments only traded on new platforms and over-the-counter, as well as adapting rules to new technology;
- clarify that market abuse occurring across both commodity and related derivative markets is prohibited;
- reinforce cooperation between financial and commodity regulators;
- introduce tougher and greater harmonisation of sanctions (including possible criminal sanctions); and
- reduce administrative burdens on small and medium sized issuers.
Proposal of directive on criminal sanctions for insider dealing and market manipulation Proposal of regulation on insider dealing and market manipulation (market abuse) Back to top Optional common European sales lawOn 11th October 2011, the European Commission proposed an optional Common European Sales Law to help break down certain barriers and give consumers more choice and a high level of protection. It will facilitate trade by offering a single set of rules for cross-border contracts in all 27 EU countries. If traders offer their products on the basis of the Common European Sales law, consumers would have the option of choosing a user-friendly European contract with a high level of protection with just one click of a mouse. The Commission's proposal now needs approval from EU Member States and the European Parliament, which already signalled its overwhelming support in a vote earlier this year. Please click here for the full press release, here for the communication from the Commission, here for the proposed regulation and here for a document including FAQs on this topic. Back to top Social Business InitiativeAt the end of October, the European Commission issued a communication to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the social business initiative. This Communication aims to create a favorable climate for social enterprises, key stakeholders in the social economy and innovation. To read more, please click here. The Communication was accompanied by a staff working paper regarding the setting–up of a favorable ecosystem to promote social businesses in the social economy and innovation. The document highlights the actions already undertaken by the European Union with regard to social entrepreneurship and outlines the actions of third countries and international organisations. To read more please click here. Back to top FSB publishes recommendations to strengthen oversight and regulation of shadow bankingThe Financial Stability Board (FSB) published on 27th October 2011 recommendations to strengthen the oversight and regulation of the shadow banking system, as requested at the November 2010 G20 summit. The report sets out practical recommendations, informed by a detailed monitoring exercise during summer 2011 to review recent trends and developments in the global shadow banking system, as well as a thorough regulatory mapping exercise to take stock of existing national and international initiatives. Five workstreams have been launched to assess the case for further regulatory action. Back to top Value added tax (VAT): high–level, joint financial and insurance industry comment letterThe European Fund and Asset Management Association (EFAMA), the European Banking Federation (EBF) and the European Insurance and Reinsurance Federation (CEA) have drafted a high level joint comment letter on the VAT treatment of financial and insurance services. The letter was submitted on 25th October 2011 to the European Commission, the Undersecretary of State of the Polish Ministry of Finance, and Mr Siekierski and Mr Nichczyński of the Permanent Representation of the Republic of Poland to the EU. Back to top ESMA technical advice on possible implementing measures of the Alternative Investment Fund Managers Directive (AIFMD)On 16th November 2011, ESMA published its advice to the European Commission on the AIFMD delegated and implementing acts. ESMA will now take forward its work on the other subordinate measures foreseen by the Directive (i.e. regulatory and implementing technical standards), prioritising those measures which should be finalised in parallel with the adoption of the implementing measures by the European Commission. ESMA has also identified a number of areas in which it considers it appropriate to develop guidelines in order to foster a harmonised implementation of the new framework. Read more (points covered by the advice). The advice is available here. Back to top IOSCO publishes recommendations on market integrityOn 20th October 2011, the Technical Committee of the International Organization of Securities Commissions (IOSCO) published its final report on Regulatory Issues Raised by the Impact of Technological Changes on Market Integrity and Efficiency, containing recommendations aimed at promoting market integrity and efficiency and to mitigate the risks posed to the financial system by the latest technological developments including high frequency and algorithmic trading. The report analyses the most significant technological developments that have arisen in financial markets in recent years and their impact on market integrity and efficiency, and sets out recommendations to assist securities markets regulators in mitigating these effects. These are designed to: - help regulators to identify the practical impact that technological developments have had and the regulatory issues to which they may give rise;
- promote a consistent approach amongst global regulators to the latest technological developments; and
- mitigate the risk that technological change may pose to the integrity and efficiency of financial markets.
The recommendations were developed in response to the G20 Leaders request in November 2010. IOSCO will provide an update on the progress of this work in mid-2012. Click here for the full press release. Back to top EIOPA launches second consultation on "Draft Response to Call for Advice"EIOPA invited market participants and occupational pensions stakeholders to participate in the second consultation. EIOPA welcomes comments from all interested parties on the “Draft Response to Call for Advice”. EIOPA is currently seeking input on all 23 areas of the CfA, including the nine areas that were addressed in the first consultation in July/August. Download the draft response to Call for Advice. Back to top LFF MediawatchPlease see the new LFF Mediawatch, covering the period from 1 to 31 October 2011 and 1 to 15 November 2011. Back to top
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