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    ALFI Newsdigest november 13, 2013    
          in this edition      
    1. Headlines
2. News from Asia Representative Office
3. New podcasts
4. Publications
5. Upcoming ALFI events
6. Past ALFI events
7. Upcoming LFF events
8. Other upcoming events
     
 
 

1.

Headlines

ALFI: Asset managers should broaden their appeal to all savers in society

A report entitled “Beyond 10%: the case for enlarging the pool of retail investors in Europe’s investment funds,” commissioned by ALFI and prepared by research company MackayWilliams highlights the fact that there is a €4 trillion pool of household assets in Europe that are not managed professionally and which is therefore either losing value or failing to grasp growth opportunities that are available through long-term investment vehicles. To capture these unmanaged assets, fund groups need to look beyond the wealthiest 10% of potential clients, the report concludes.

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download the report

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ALFI: Technical comments on ESMA’s discussion paper on the clearing obligation under EMIR

ALFI welcomes the European Securities and Markets Authority’s general approach to defining regulatory technical standards on contracts, but makes a series of technical comments.

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EFAMA: Net sales of UCITS decline in August

The European Fund and Asset Management Association (EFAMA) has released its Investment Fund Industry Fact Sheet for August 2013. The figures are based on net sales and/or net assets data provided by 26 associations representing more than 99.6 percent of total UCITS and non-UCITS assets at end August 2013.  

Net sales of UCITS fell from EUR 36 billion in July to EUR 15 billion in August, as net sales of long-term UCITS reduced significantly during the month.

Long-term UCITS (UCITS excluding money market funds) net sales broke-even in August, which marked a steep decline compared to July when inflows amounted to EUR 35 billion. Net sales of equity funds reduced to EUR 2 billion from EUR 14 billion a month earlier. Bond funds experienced a turnaround in net sales in August registering net outflows of EUR 7 billion against net inflows of EUR 6 billion in July. Net sales of balanced funds decreased to EUR 3 billion from ERU 9 billion in July.

Bond funds suffered in August from rising long-term bond yields, whilst uncertainty about Fed monetary policy and geopolitical concerns impacted negatively on equity funds.

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EFAMA: Response to ESMA Discussion Paper on the implementation of CRA3 Regulation

The European Fund and Asset Management Association (EFAMA) has finalised its response to the ESMA Discussion Paper on the implementation of CRA3 Regulation and the draft Regulatory Technical Standards (RTSs) that ESMA has to submit by June 2014 to the European Commission.

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EFAMA/SWIFT: Fund processing standardisation continues to progress

The European Fund and Asset Management Association (EFAMA) has published, in cooperation with SWIFT, a new report on the evolution of automation and standardisation rates of fund orders received by transfer agents in the cross-border fund centres of Luxembourg and Ireland in the first half of 2013. Participating in this survey were 32 TAs in Ireland and Luxembourg, representing more than 80% of the total incoming third-party investment funds order volumes in both markets.

The report confirms that the total volume of orders increased by 15% to 14.3 million, compared to 12.5 million orders in the second half of 2012. The automation rate and the use of the ISO standards in the fund industry remained stable at 77.8% (from 77.7% in December 2012).

The report can be downloaded on the website of EFAMA and SWIFT.

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EFAMA: Fact Book 2013 issued

The European Fund and Asset Management Association (EFAMA) has issued the 11th edition of its EFAMA Fact Book offering comprehensive information about recent trends in the European investment fund industry and analysing a number of issues that are at the centre of the future developments of the industry.

The Fact Book can be ordered online at the price of EUR 110.00 per copy.

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ESMA: MiFID 1 Guidelines on remuneration policies and practices translated into EU languages

The European Securities and Markets Authorithy (ESMA) has published its translations of the Guidelines on remuneration policies and practices (MiFID). You will be able to find the translation in your respective language on the ESMA Website here: http://www.esma.europa.eu/page/mifid-databases/

The Guidelines will apply to investment firms under MiFID as well as UCITS Management Companies and external AIFM that provide investment services of individual portfolio management or non-core services (within the meaning of Article 6 (3)(a) and (b) of the UCITS Directive and Article 6 (4)(a) and (b) of the AIFMD). They will apply in relation to the provision of investment services listed in Section AA of Annex I of MiFID and ancillary services listed in Section B thereof. They address situations where services are provided to retail clients but should also be applied to the extent relevant when services are provided to professional clients.

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ESMA: Long-awaited AIFMD Guidelines on reporting obligations released

The European Securities and Markets Authority (ESMA) has published its final report on “Guidelines on reporting obligations under Articles 3(3)(d) and 24(1), (2) and (4) of the AIFMD”. The guidelines aim to clarify provisions of the AIFMD and its “delegated act” (“Commission Delegated Regulation (EU) No 231/2013 of 19 December 2012”) on required information, which will help to have a more comprehensive and consistent oversight of AIFMs’ activities.

ESMA has also published an Opinion that proposes introducing additional periodic reporting including such information as value-at-risk of AIFs or the number of transactions carried out using high frequency algorithmic trading techniques. This release also includes some technical supporting material (a consolidated reporting template, detailed IT guidance for filing of the XML and the XSD schema) that are supposed to facilitate the reporting by AIFMs to regulators.

The Guidelines will now be translated into the official languages of the EU. National competent authorities will then have two months from the date of the publication of the translations on ESMA’s website to confirm to ESMA whether they comply or intend to comply with the Guidelines by incorporating them into their supervisory practices.

The Luxembourg supervisory authority  CSSF announces that it will soon publish a circular which will include among others the practical aspects of reporting and clarification on the information to be reported to the CSSF as well as the timing of such reporting via the reporting template foreseen by Annex IV of the Commission Delegated Regulation (EU) No 231/2013 of 19 December 2012.

All interested parties are invited to send their remarks, questions and contributions to aifm@cssf.lu.

Documents

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CPSS/IOSCO: Consultative document on quantitative disclosure by central counterparties

The Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO) have published for public comment a consultative document on the Public quantitative disclosure standards for central counterparties.

In order that the risks related to the use of central counterparties (CCPs) can be properly understood, CCPs need to make relevant information publicly available, as stated in the CPSS-IOSCO Principles for financial market infrastructures, published in April 2012.

To provide guidance on what should be disclosed by a CCP and other financial market infrastructures, CPSS and IOSCO published a Disclosure framework in December 2012, primarily covering qualitative data that need relatively infrequent updating (for example, when there is a change to a CCP’s risk management framework). To complement that disclosure framework, the document now being published sets out guidance on the quantitative data that a CCP should disclose more frequently.

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IOSCO: Report on the Second IOSCO Hedge Fund Survey

The International Organization of Securities Commissions (IOSCO) has published the Report on the Second IOSCO Hedge Fund Survey, which describes the comprehensive and global effort by relevant regulators to better understand the hedge fund industry and its salient features. 

The aim of the IOSCO survey is to gather data from hedge fund managers and advisers about the markets in which they operate, their trading activities, leverage, funding and counterparty information. It forms part of IOSCO’s efforts to support the G20 initiative to mitigate risk associated with hedge fund trading and traditional opacity.

Despite some limitations, the survey has proven to be a useful tool for examining this segment of the market, particularly considering the limited amount of publicly available hedge fund data. As hedge funds tend to operate across multiple jurisdictions, this initiative offers a unique perspective on the global nature of these funds.

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IOSCO: Status as Key Global Reference Point for securities regulation confirmed

At the organisation’s Annual Conference held in Luxembourg from 15 to 19 September 2013, the members of the International Organization of Securities Commissions (IOSCO) discussed how to advance work on global regulatory reform and on the identification of emerging risks in securities markets. They namely want IOSCO to play an increasingly active role in promoting the finance of long-term investment through capital markets – in areas as diverse as corporate bond markets, securitization, SME finance and Islamic Finance. They further agreed to begin work on crowd funding.

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The event was attended by more than 700 participants,  half of which were IOSCO members with 212 representatives from 97 ordinary member institutions. The event was supported by 26 sponsors, 20 of which were present with an exhibition booth. 25 speakers from 14 countries shared and exchanged their views during the public panel sessions. Click here for LFF’s interview with Mr. Jean Guill, Director General of the CSSF who was hosting the conference.

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FATCA: IRS publishes corrections to final regulations and FAQs

On 10 September 2013, the US Internal Revenue Service (IRS) issued a set of corrections to its final regulations under the US Foreign Account Tax Compliance Act (FATCA). Click here to read document “TD 9610”.

Moreover, having recently unveiled its online registration portal, the IRS published two sets of Frequently Asked Questions (FAQs):

FATCA - FAQs General

FATCA - Registration System FAQs

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PRIPs: Vote in European Parliament’s ECON committee

Having discussed the 2012 Commission proposal for a regulation on key information documents for investment products for a couple of months, the European Parliament’s Economic and Monetary Affairs (ECON) Committee on 21 October  2013 adopted a text with its proposed amendments. Please click here for the ECON committee’s press release.

It is important to note that the vote on the text did not include a mandate for the EU Parliament to enter into trilogue negotiations with the Council and the Commission. To obtain this mandate concerned MEPs will have to wait for a plenary vote of the European Parliament, which may take place between 18 and 21 November 2013.

According to the ECON committee, the transition period for UCITS and AIF for which disclosure rules comparable to the UCITS KIID are applicable would be reduced from five to three years after the entry into force of the regulation. As this is not in line with the position of the Council of the EU who did not suggest a change to the five year transition rule, the final wording will depend on the outcome of the discussions between the three EU institutions.

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IIFA: Delegates discussed how to serve investors amid increased regulation

At the 27th Annual Conference of the International Investment Funds Association (IIFA), more than 70 delegates from more than 30 countries heard from key regulators, considered regulatory and business trends in each region of the world, and discussed the potential for funds to play a growing role in retirement provision across the globe.

read more

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2.

News from Asia Representative Office

An update on fund passport initiatives in Asia

On September 20, 2013 and at the occasion of the Asia-Pacific Economic Cooperation (APEC) meeting, finance ministers from Singapore, South Korea, Australia and New Zealand officialized a statement of intent on the establishment of the Asia Region Funds Passport.

According to the described timeline, eligible collective investment schemes in passport members’ economies can access the “passport” on January 2016.

The statement of intent can be accessed from this link

On October 1, 2013, regulators from 3 countries of the Association of Southeast Asian Nations (ASEAN) signed a memorandum of understanding, streamlining the authorization process of the forthcoming ASEAN collective investment schemes which will benefit from a “passport” within these 3 countries. 

The 3 countries are Singapore, Malaysia and Thailand.

In addition, a set of standards describing qualifying CIS was published: http://www.theacmf.org/ACMF/upload/standards_of_qualifying_cis.pdf

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3.

New podcasts

What is in store for the main financial centres in the next year?

At the occasion of its Global Distribution Conference, ALFI produced three new podcasts in which Peng Wah Choy, CEO of Harvest Global Investments Limited, Hong Kong, Lieven Debruyne, Chairman of the Hong Kong Investment Funds Association (HKIFA), Hong Kong, and José Carlos Doherty, Chief Executive Officer at the Brazilian Financial and Capital Markets Association, São Paulo, shared their views on recent trends in the investment fund industry.

Get direct access to their statements: 

Peng Wah Choy, CEO, Harvest Global Investments Limited, Hong Kong

Lieven Debruyne, Chairman, Hong Kong Investment Funds Association (HKIFA),
Hong Kong

José Carlos Doherty, Chief Executive Officer, Brazilian Financial and Capital Markets Association, São Paulo

 

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4.

Publications

ALFI issues general brochure about the Luxembourg fund centre in French and German

ALFI’s brochure presenting the Luxembourg investment fund centre is now also available in French and German. Both brochures can be downloaded from ALFI’s website.

Hard copies may be ordered at the ALFI secretariat via info@alfi.lu.

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5.

Upcoming ALFI events

ALFI events 2013

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ALFI events 2014

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19-20 November: ALFI European Alternative Investment Funds Conference

Programme and online registration : Click here.

Exhibition opportunities available!  Click here.

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3-5 December: ALFI Roadshow to Asia (Tokyo, Kuala Lumpur, Taipei, Singapore, Beijing, Hong Kong)

Locations and Programmes

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17 December: The evolving taxation agenda and its impact on the Asset Management Industry - An ALFI Leading Edge Conference

Event webpage

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18 & 19 March 2014: ALFI Spring Conference

NCCK, Kirchberg, Luxembourg

Event webpage

Sponsorhip & exhibition forms with details

Year package opportunities will be sent to ALFI members shortly.

Deadline for sponsorship: Friday, 29 November 2013!

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18 March 2014, evening: ALFI Gala dinner

Location: LuxExpo, Luxembourg

Event  webpage

Sponsorship agreement form with details.

Deadline for sponsorship: Friday, 29 November 2013!

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6.

Past ALFI events

23 October 2013: ALFI Leading Edge conference in London

For the first time, ALFI organised its Leading Edge conference in London on 23 October 2013. The event was a great success attracting about 500 fund industry experts! Many thanks to the panelists, participants, sponsors and Twitter followers who actively participated in discussions on @ALFIfunds using #LE13.

Get an impression of the event with our picture gallery.

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12-13 September 2013: Global Distribution conference

The ALFI Global Distribution Conference on September 12-13 in Kirchberg, Luxembourg, was attended by around 650 delegates. View the video on ALFI's Youtube channel ALFILuxembourg!

This edition was supported by 59 exhibitors and sponsors. The conference was also promoted by 12 media partners.

Numerous Twitter followers contributed on the @ALFIfunds Twitter account. More than 80 tweets mentioned conference's hashtag #ALFIGlobal13. Thank you all for following us and sharing your insights!

We also published several discussions in our LinkedIn group - we hope you found them interesting!

The participants had an opportunity to win 15 mini iPads thanks to an Exhibitors game. Congratulations to the winners!

View the photos from the conference by clicking on the picture below:

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30 September - 1 October: ALFI Roadshow to Switzerland

About 500 people signed up for ALFI’s 7th roadshow to Switzerland that included a delegation of 80 fund professionals from Luxembourg. This year’s programme included special roundtables on Responsible Investing as well as general sessions on UCITS and the AIFMD and workshops on Real Estate, Private Equity and Hedge Funds.

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11 September 2013: ALFI Golf Tournament

On the occasion of the ALFI Global Distribution Conference, ALFI welcomed 96 players and 24 beginners to Kikuoka Country Club for its traditional golf tournament. Thanks to the support of the sponsors and participants, the profits of the day were donated Prolepsis in Greece that deals with intensifying food shortage problems that students of many Greek schools experience.

Photos of the day: click here

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7.

Upcoming LFF events

10-11 December 2013: Luxembourg for Finance in Doha

Luxembourg for Finance will attend the Euromoney Qatar Conference that will take place in Doha on December 10-11, 2013. The agency has obtained a certain number of free entrance tickets that will be offered to interested actors of the financial centre on a "first come, first serve" basis.

More information can be found here

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13-14 January 2014: Luxembourg for Finance at the Asian Financial Forum 2014

Luxembourg for Finance will be present at the Asian Financial Forum 2014 (AFF) in Hong Kong with a promotional booth from 13-14 January 2014. The agency for the development of the financial centre invites the Luxembourg financial community to attend the Forum and to be present at its booth. Interested parties will have the opportunity to register at a discounted fee (475 USD instead of 950 USD).

Please refer to the LFF website (http://www.luxembourgforfinance.lu/asian-financial-forum-2014) for more detailed information.

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8.

Other upcoming events

IFBL: full range of ALFI / IFBL fund industry courses

The IFBL is offering its full range of ALFI / IFBL fund industry courses for which full details can be found on their website (www.ifbl.lu). In particular, the IFBL would like to draw your attention to the following important upcoming items:  

  • Real Estate & Private Equity – Full certifying programmes for both disciplines are now in progress for which it is still possible to subscribe the remaining advanced modules.
  • Roles and Responsibilities of Fund Directors – this director level seminar, organised in cooperation with ALFI and ILA will take place on the 28th and 29th November. This popular seminar provides participants with an understanding of corporate governance within funds and the legal, regulatory and financial responsibilities of directors.
  • Risk Management for Fund Directors and Conducting officers – this module provides fund directors, conducting officers and their staff with a solid understanding of the principles, methods and tools of risk management and governance and how they apply to UCITS funds and alternative investment funds. A fresh date for in Early December will be confirmed shortly.

Additional information is available on the IFBL website or from the IFBL Customer Service team either by phone on 46 50 16-1 or by e-mail at customer@ifbl.lu.

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