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    ALFI Newsflash december 14, 2011    
          in this edition      
    1. ALFI Greetings for 2012
2. Headlines
3. ALFI past events
4. ALFI events
     
 
 

1.

ALFI Greetings for 2012

ALFI wishes YOU all the best for 2012!

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2.

Headlines

ALFI: Q&A CSSF Circular 11/512

Over the last few years ALFI has consistently demonstrated its commitment to risk management, and in 2006 a dedicated risk management working group was established in order to support ALFI and its members in the light of the upcoming regulations on risk management (i.e. CSSF risk circular 07/308). The initial focus was on portfolio risks such as market risk (Value at Risk), counterparty and issuer risk etc. Since the regulatory approach regarding risk management - as laid down in CESR’s guidance "Risk Principles" - demands an overall risk management approach, the ALFI Board decided in the past to meet this requirement by establishing a dedicated “Risk Management Committee”.  This Committee not only looks at the above-mentioned portfolio risks, but also has dedicated working groups on operational risk and liquidity risk.

In relation to risk management, a number of laws and regulations have been issued at a European and Luxembourg level. ALFI’s Risk Management technical Committee is currently analysing, amongst others, the CSSF Circular 11/512 dated 30 May 2011 regarding:

  • Presentation of the main regulatory changes in risk management following the publication of CSSF Regulation No. 10-4 and ESMA clarifications;
  • Further clarifications from the CSSF on risk management rules;
  • Definition of the content and format of the risk management process to be communicated to the CSSF;
  • Replacing, as from 1st July 2011, CSSF Circular 07/308 on UCITS risk management and the use of financial derivative instruments.

We are happy to provide you with the first version of the ALFI Q&A on Risk Management Circular CSSF 11/512. Industry participants had issued questions to the Risk Management Committee on implementation and interpretation aspects concerning the new Risk Management Circular CSSF 11/512. ALFI's members are welcome to submit further questions to the Committee, which will review them and consider whether to include them in a future version of the document. Please send your questions to info@alfi.lu.

By clicking here, you will access the ALFI Q&A document. The document contains the working group's answers to questions about the implementation and the application of the CSSF Circular 11/512. ALFI's members are welcome to submit questions to the working group, which will review it and consider whether to include it in a future copy of this document. Please send your questions to info@alfi.lu.

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European Commission: future VAT system

On 6th December 2011, the European Commission adopted a communication on the future of VAT. This sets out the fundamental characteristics that must underlie the new VAT regime, and priority actions needed to create a simpler, more efficient and more robust VAT system in the EU.

Three overriding objectives shape the vision for the new VAT system: First, VAT must be made more workable for businesses. Second, VAT must be made more efficient in supporting Member States' fiscal consolidation efforts and sustainable economic growth. Third, the huge revenue losses that occur today due to uncollected VAT and fraud need to be stopped.

Click here for the press release, and here for the frequently asked questions.

Moreover, the results of the consultation on the future of VAT and the summary report are now available on this website.

Background information: ALFI Newsflash of 17th October 2011

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Commission Proposals for Venture Capital and Social Entrepreneurship

The European Commission published on 7th December 2011  its proposals to create two new brands of European investment funds next to UCITS and AIF:

1. Proposal for a Regulation on “European Venture Capital Funds”

2. Proposal for a Regulation on “European Social Entrepreneurship Funds”

The first Proposal on venture capital funds creates a single rule book for the marketing of these funds.  

To read the Proposal click here.  

The second Proposal aims at creating a legislative framework tailored to the needs of social undertakings and to distinguish social entrepreneurship funds from the wider category of alternative investment funds.

To read  the Proposal click here.

Both proposals will now go to the Council and the European Parliament.

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ECJ judgement of 20 October 2011 (C-284/09): taxation of dividends

The European Court of Justice (ECJ) recently declared that, by taxing portfolio dividends distributed to companies established in other Member States more heavily in economic terms than dividends distributed to companies established in its territory, the Federal Republic of Germany has violated the free movement of capital.

While withholding tax on dividends paid out by German companies to resident corporate shareholders is fully credited against the corporate income tax payable, withholding tax on dividends to non-resident corporate shareholders is definite.

The ECJ held that there is no justification of this different treatment.

Click here for the judgement of 20th October 2011.

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EFAMA submission on Commission proposal regarding the introduction of a financial transaction tax (FTT)

On 30th November 2011, the European Fund and Asset Management Association (EFAMA) submitted to the European Commission its comments on the proposal for a Council Directive on a common system of financial transaction tax and amending Directive 2008/7/EC.

Many comments have been made recently in the press in support of the proposed financial transaction tax on the basis that it would result in the financial sector making a contribution to the economy and to society as a whole. EFAMA believes, however, that such claims are misleading on the basis that the economic cost of the tax would, in practice, be borne by end consumers of the financial services, including individual savers and those participating in pension plans.

The impact of the proposed financial transaction tax on the funds sector of the long term savings market would be significant, not only because the proposed headline rates are relatively high, but also because the proposal, as currently drafted, would give rise to multiple taxation. In the case of investment funds, for example, the charge to financial transaction tax would apply at the level of both funds (on transactions in their portfolios) and their investors (on transactions in fund shares/units). Moreover, the use of financial intermediaries to distribute fund shares/units means that the purchase of shares/units by a single investor may give rise to multiple transactions down the distribution chain, all of which would be subject to financial transaction tax.

EFAMA is also concerned that there is no guarantee that the proposed financial transaction tax would result in significant net revenues, in spite of the fact that it would give rise to a significant economic cost for consumers. This is partly because the fundamental impact of the proposed financial transaction tax would be to dampen end-user appetite for transactions and encourage relocation of operations outside the EU (or eurozone, if a solely eurozone-wide approach to financial transaction taxes is adopted). This would reduce not only financial transaction tax revenue but also direct tax revenue. There would also be an increased cost to society which would arise as a result of reducing the amount of long-term savings.

Press release

Submission

Background information: ALFI Newsflash of 17th October 2011

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LFF Mediawatch

LFF Mediawatch, covering the period from 16 to 30 November 2011.
In this issue:

  • Open letter to the American ambassador to Luxembourg on Fatca
  • Statec corrects its growth forecasts downwards
  • AIFMD and its opportunities for Luxembourg

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3.

ALFI past events

6-7 December: ALFI Roadshow to Asia

A delegation of industry specialists from Luxembourg led by the Chairman of ALFI, Marc Saluzzi, travelled to Taipei, Hong Kong and Tokyo last week to present the most recent developments on the Luxembourg scene to over 400 local industry players. A half day seminar took place at the W Hotel in Taipei that focused on ‘UCITS Distribution & Regulatory Changes’ and ‘UCITS fund set-up and Operating Model’. In Hong a full day’s seminar at the Four Seasons Hotel included plenary sessions on ‘UCITS’ and ‘the AIFMD’ followed by three workshops; ‘UCITS’, ‘Alternative UCITS & Hedge Funds’ and ’Real Estate & Private Equity’.  A third event took place at the Luxembourg Embassy in Tokyo for a selection of top Japanese Asset Managers.

During the roadshow, ALFI met with the financial regulators and fund associations in both Taipei and Hong Kong.

Click here to see the seminar presentations.

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13 December: ALFI Leading Edge Conference n°4

UCITS IV introduced significant changes to UCITS Management Companies and to self-managed SICAVs. This event combined thorough legal and regulatory analysis, highly topical market research and practical insights into the latest requirements for Luxembourg Management Companies.

Morning sessions dealt with the legal and regulatory requirements applicable to Luxembourg Management Companies, covered the organizational requirement needs and addressed the tax challenges for Management Companies. The afternoon sessions were dedicated to organizational requirement needs such as risk management and corporate governance functions and gave an insight into the Luxembourg Management Company Passport, and a comparative review of the setup alternatives were presented.

More than 200 attendees participated at the event.

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4.

ALFI events

ALFI confirmed events 2012

ALFI events calendar 2012

ALFI endorsed events calendar

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2012: Sponsorship Year Packages for ALFI members

2012: Sponsorship Year Packages for ALFI members

1. Yearly Conference Sponsorship and/or Exhibition Packages 2012: 11% or 14% discount!

  • Deadline extended to Thursday 15th December 2011
  • Click here for the agreement form

2.Yearly Roadshow Sponsorship Package 2012: 10% discount!

  • Deadline Friday 6th January 2012
  • Click here for the agreement form

Click here for full details.

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13-14 March 2012: ALFI Spring Conference

Sponsorship opportunity - deadline this Thursday, 15th December 2011!

Available options:

1) General Sponsorship

2) Exhibition Stand (incl. 2 or 4 tickets)

3) Package: General Sponsorship & Exhibition Stand

4) Lunch Sponsorship incl. Exhibition Booth – fully booked

5) Badge Sponsorship- fully booked

6) NEW: Voting System Sponsorship

Click here for details.

Confirmed sponsors/exhibitors as of 12th December:

Allianz Global Investors Luxembourg S.A., Acarda S.à r.l., APEX Fund Services, BNP Paribas Securities Services, Bonn & Schmitt Avocats, Clearstream Banking, Confluence, CACEIS, Ernst & Young, Finesti S.A., HSBC Securities Services, IDS GmbH Analysis and Reporting Services, KNEIP, KPMG Luxembourg S.à r.l., KBL European Private Banking, Multifonds, Profidata Group, RBC Dexia, Société Générale Securities Services, Sowatec AG, UBS, Telindus

For highlights of the programme and other details, please refer to the conference webpage.

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13 March 2012: ALFI Gala Dinner

Sponsorship opportunity - deadline this Thursday, 15th December 2011! Click here for details on General and Table sponsorship.

The 2012 edition of this event will be held at the newly renovated former Cercle Municipal ball room. Due to this smaller and prestigious venue, registrations for the dinner are limited. ALFI is offering two sponsorship options with priority to ALFI members.

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18 April 2012: ALFI & PRiM Risk Management Conference - Save the date!

The conference committee will start working on the programme this month.

For any suggestions on topics please contact events@alfi.lu

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9 & 10 May 2012: ALFI Responsible Investing Conference

Save the date!

A combination of the formerly known ALFI SRI and Microfinance conferences. More information coming soon.

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18 & 19 September 2012: ALFI Global Distribution Conference

 

SAVE the NEW DATE!

 

Further details will be published on ALFI’s website once available.

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