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    ALFI Newsdigest november 26, 2012    
          in this edition      
    1. Headlines
2. News from ALFI Asia Representative Office
3. Past events
4. ALFI upcoming events
5. LFF event



ALFI replies to the EC Consultation Document on UCITS product rules, liquidity management, depositary, money market funds

Please click here to read the document.

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UCITS Simplified Notification Procedure – practical issues

The ALFI UCITS IV Simplified Notification Procedure sub-working group has been monitoring the implementation of the UCITS IV Directive’s notification provisions since 2009 and has established a list of  practical questions related to both the outward passporting and the inward passporting of UCITS to and from Luxembourg.

Latest version of this inventory.

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CSSF publishes circular 12/546

The Commission de Surveillance du Secteur Financier (CSSF) published Circular 12/546 concerning the authorisation and organisation of Luxembourg management companies subject to Chapter 15 of the Law of 17th December 2010 relating to undertakings for collective investment as well as to investment companies which have not designated a management company within the meaning of Article 27 of the Law of 17th December 2010 relating to undertakings for collective investment.

CSSF circular (presently only available in French).

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FATCA: IRS provides revised due diligence timelines and clarifies the scope of grandfathered obligations

On 24th October 2012, the U.S. Internal Revenue Service (IRS) released Announcement 2012-42 entitled “Timelines for Due Diligence and Other Requirements under FATCA”.

The text outlines:

  • certain timelines for withholding agents and foreign financial institutions (FFIs) to complete due diligence and other requirements; and
  • certain additional guidance concerning gross proceeds withholding and the status of certain instruments as grandfathered obligations under sections 1471 through 1474 of the Internal Revenue Code.

Read more.
FATCA Announcement 2012-42.

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FATCA: publication of Model 2 Agreement

On 14th November 2012, the U.S. Treasury published the Model 2 Intergovernmental Agreement for Cooperation to Facilitate the Implementation of FATCA.

Please click here for the document.

Background information:
ALFI newsflash of 31st October 2012 and of 6th September 2012.

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ESMA work programme 2013

The work Programme for 2013 published by the ESMA authority at the beginning of October, is characterised by a major increase of the Authority’s workload. The actions forecast in the programme are naturally in line with the current focus of restoring confidence in European financial markets.

Read more.

ESMA 2013 work programme.

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EFAMA position paper on crisis management

On 6th June 2012, the European Commission published a proposal for EU-wide rules for recovery and resolution of credit institutions and investment firms. The proposed rules aim to ensure that in the future authorities will have the means to intervene decisively both before problems occur and early on in the process if they do. Furthermore, if the financial situation of a bank deteriorates beyond repair, the proposal seeks to ensure that a bank's critical functions can be rescued while the costs of restructuring and resolving failing banks fall upon the bank's owners and creditors and not on taxpayers.

The European Fund and Asset Management Association (EFAMA) submitted a position paper on the so called Crisis Management Directive to the concerned EU authorities.

Read more.
European Commission proposal.
EFAMA position paper on crisis management.


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New requirements imposed on non-Korean CIVs seeking to claim treaty benefits

The European Fund and Asset Management Association (EFAMA) has sent a letter to the Korean tax authorities on the new requirements imposed on non-Korean collective investment vehicles (CIVs) seeking to claim treaty benefits.

EFAMA seeks confirmation that certain UCITS funds should claim at source treaty relief by completing the "Application for Entitlement to Reduced Tax Rate on Domestic Sourced Income (for Foreign Corporation)" form.

EFAMA submission.

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Debate in the European Parliament on Key Information Documents

The Commission proposal for a regulation on key information documents (KID regulation) is currently debated in the European Parliament. A draft report from the Economic and Monetary Affairs (ECON) Committee will probably be presented at the end of November. A vote in the Committee responsible is currently scheduled to take place in March, and a plenary vote in May 2013.

On 6th November 2012, the ECON Committee held a first exchange of views on the KID regulation. MEP Pervenche Bérès has been appointed as the European Parliament's Rapporteur. She presented her preliminary views and the shadow rapporteurs responded to these.

European Commission proposal for a regulation on key information documents (KID regulation).
EFAMA summary.

Background information:
ALFI newsflash of 6th September 2012.

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European Commission Programme

On 23rd October, the European Commission published its working programme for the forthcoming year. The Commission template ambitions to proceed with the reform of the economic regulatory framework of the Monetary Union and of the System of Financial Supervisors in order to enhance stability, transparency and consumer protection in the financial sector.

Read more.

Press release.

Commission work programme for 2013.

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EU Commission adopted Single Market Act II: Twelve priority actions for new growth

On 3rd October 2012, the European Commission adopted the Single Market Act II: a set of twelve priority actions for new growth. The new set of actions focuses on integrated networks, the cross border mobility of citizens and businesses, the digital economy and actions that reinforce social entrepreneurship as well as cohesion and consumer confidence.

One of its key actions is to boost long-term investment in the real economy by facilitating access to long-term investment funds. The Single Market Act II follows in the footsteps the first set of measures adopted by the Commission in April 2011 – the “Single Market Act I” – and represents a new chapter in a process towards a deeper, and better integrated single market. Adoption of Single Market Act II marks the 20th anniversary of the EU’s single market and kicks off the Single Market Week (15th-20th October 2012).

The Single Market Act.

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Discussion on Financial Transaction Tax (FTT) in the ECOFIN Council

On 13th November 2012, the ECOFIN Council (EU-27 Finance Ministers) took stock of developments regarding the introduction of an FTT in a number of EU member states wishing to participate in enhanced cooperation and discussed how to proceed with the dossier. The Commission presented its proposal for a decision to authorize enhanced cooperation on the FTT.

Read more.
Provisional version of the Council's press release.

Background information:
ALFI newsflash of 25th October 2012.

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VAT treatment of investment advisory services performed by a third party

The Court of Justice of the European Union (CJEU) will in a few months decide about the VAT treatment of investment advisory services performed by a third party (Case C-275/11 "GfBk"). On 8th November 2012, the Advocate General Cruz Villalón delivered his opinion, which is not binding but provides a guide to the arguments that the Court might consider in making its judgment.

Click here for the text of the opinion.

Background information:
ALFI newsflash of 19th September 2011.

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IOSCO Publishes Principles for Oil Price Reporting Agencies

The Board of the International Organization of Securities Commissions published its final report on Principles for Oil Price Reporting Agencies (PRAs), which sets out principles intended to enhance the reliability of oil price assessments that are referenced in derivative contracts subject to regulation by IOSCO members.

Read more.

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International investment funds industry calls for closer interaction with regulators

Investment experts from around the globe converged on Cape Town, South Africa, at the end of October to discuss the future of the international investment funds industry in an environment of burgeoning regulation with implications across jurisdictions.
Hosted by the Association for Savings and Investment South Africa (ASISA), the 26th Annual Conference of the International Investment Funds Association (IIFA) attracted representatives from some 36 countries. More than 40 IIFA member associations represent assets under management of around US$25 trillion.

Press release.

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The State of Microfinance Investment 2012: MicroRate's 7th annual survey and analysis on MIVs

MicroRate's 7th annual survey and analysis of microfinance investment vehicles (MIVs) is based on interviews with MIV managers and a survey of the 102 active MIVs with total assets under management of $7.5 billion (as of December 2011).

The report was sponsored by Citi Microfinance, the European Investment Bank, LuxFLAG, and the Luxembourg government.

Read more.
Press release.

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Service Provider Rankings 2012: Luxembourg elected as the most favourite domicile in Europe

The "Service Provider Rankings 2012" unveiled on 31st October by Hedge Funds Review elected  Luxembourg as the most favourite domicile in Europe.

Full results of the 2012 rankings.

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ALFI supports Luxembourg Students’ Annual Meeting REEL

The 28th edition of the Réunion Européenne des Étudiants Luxembourgeois (REEL) took place this year in Aachen, Germany from 11th to 14th October 2012.

Each year, this annual event gathers over 150 Luxembourg students currently spread in universities all across Europe and aims at discussing common issues facing Luxembourg students as well as relations between universities and the political and economic world.

For further information, please visit www.reel.lu.
Picture gallery.

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Express, the ALFI podcast

Watch the latest episodes of "Express, the ALFI podcast":

To subscribe to Express, please send an email to registrations@alfi.lu.

View ALFI's podcasts and other videos also on ALFI Youtube channel!

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LuxFLAG now labels thirty funds

LuxFLAG is pleased to announce that two new Environment Funds have been granted the LuxFLAG Environment Label. These are the Living Planet Fund - Global Environment and Parvest Global Environment.

Five Environment Funds have been granted the LuxFLAG Environment Label as of October 2012, representing approximately USD 478 million in Assets under Management.

Press release

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News from ALFI Asia Representative Office

Philippines: New rules on exchange traded funds

On October 19th 2012 the Philippines’ Securities and Exchange Commission (SEC) issued a memorandum circular allowing the launch of exchange traded funds in the Philippines.
The new rules include a minimum paid-up capital of Ps250 million (US$6.1 million) and an all-Filipino ETF board of directors. Also, ETF managers must have minimum of 5 years of experience in fund management. The new rules also allow securities lending as well as new provisions on direct redemptions.
The rules described in the circular shall take effect 15 days after the date of last publication in 2 newspapers of general circulation in the Philippines.

Please click here to read the Circular.

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Past events

12 November 2012: ALFI Roadshow Frankfurt

More than 300 fund industry professionals registered for this conference. This year's program included News from Luxembourg, and explanations on the implementation of the Alternative Investment Fund Managers Directive (AIFMD).

After a coffee break, three seminars were held simultaneously with different focuses:

  • Practical implications of the new regulations on UCITS and Alternative Investment Funds (AIF)
  • Solutions under the AIFMD for private equity, real estate and hedge funds, and
  • Real estate fund structures 2012

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16 November 2012: New York roadshow

More than 170 participants registered to this ALFI breakfast seminar focusing on the Alternative Investment Funds Managers Directive (AIFMD).

This interactive session provided valuable insights into the latest developments on AIFMD, examining issues such as: how can US managers continue to raise capital in Europe? and what are the operational solutions for implementing the Directive effectively? An experienced panel of experts assembled for the ALFI seminar outlined these challenges and demonstrated how they can be addressed to the benefit of fund managers.

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20-21 November 2012: ALFI European Alternative Investment Funds Conference

The conference offered two days of presentations and panel discussions on the latest news and trends in the alternative investment industry and specialised workshops on Hedge Funds, Real Estate and Private Equity.

The event attracted this time a new record of roughly 600 registrations with 29 exhibitors and 36 sponsors.

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ALFI upcoming events

ALFI confirmed events

ALFI Calendar of Events.
Check out all up-coming events including the confirmed dates in 2013.

ALFI endorsed events calendar.
Click on the name of the event to get your ALFI member discount code. For information on the endorsed event itself, please refer to the general calendar above.

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11 December 2012: AIFM Directive level 2-Implementation measures-leading edge conference– Event postponed until further notice

With Level 2 technical guidance due imminently and Luxembourg transposition bill of law submitted to the Chamber of Representatives on August 24th 2012, ALFI is pleased to host a new Leading Edge Conference fully dedicated to analysing the latest developments in the implementation of the AIFM directive and their consequences for the industry. As the final text of the level 2 measures have not yet been released, ALFI has decided to postpone the event. A new date will be determined shortly after the level 2 measures will have been published.

This one day conference will combine thorough legal and regulatory analysis, highly topical research and practical insights, to provide a perfect platform for all industry stakeholders willing to align their strategies and practice with leading edge industry developments.

The conference will be a unique opportunity to hear from and exchange views with industry leading experts on:
•    Exploring the implications of the new delegation rules
•    Raising Capital from European Investors - AIFMD Opportunities and Challenges
•    The evolving role of the Depositary function under the AIFMD
•    Major technical implications for the implementation of AIFMD
•    Transposition / Challenges and Opportunities for Luxembourg

Programme: coming soon!
Registration/sponsorship: click here.

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LFF event

14-18 January 2013: LFF Asia Tour

We would like to inform you that the Agency Luxembourg for Finance will organise a financial mission to Hong Kong, Beijing and Shanghai from 14th to 18th January 2013 led by Mr Luc Frieden, Minister of Finance and Chairman of Luxembourg for Finance.

LFF Invitation letter.

Asia Tour 2013.

LFF Registration Form.

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