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    Newsflash october 28, 2013    
          in this edition      
    1. Headlines
2. News from Asia Representative Office
3. Upcoming ALFI events
4. Past ALFI events
5. ALFI podcasts
6. Upcoming LFF events
7. Other upcoming events
     
 
 

1.

Headlines

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.  

The main developments in August 2013 in the reporting countries can be summarized as follows:

  • 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.
  • Money market funds registered increased net inflows in August of EUR 15 billion, up from EUR 1 billion in the previous month.
  • Total non-UCITS saw their net sales fall to EUR 9 billion in August, compared to EUR 16 billion in July.  This decrease in net sales can be attributed to special funds (funds reserved to institutional investors) which registered net inflows of EUR 5 billion, compared to EUR 12 billion recorded in July.
  • Total net assets of UCITS stood at EUR 6,649 billion at end August 2013, representing a 0.3 percent decline during the month.  Total net assets of non-UCITS increased in August by 0.1 percent to stand at EUR 2,677 billion at month end.  Total net assets of the European investment fund industry at end August amounted to EUR 9,327 billion.

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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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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CPSS and IOSCO issue a 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 today 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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ESMA's MiFID 1 Guidelines on remuneration policies and practices translated into EU languages

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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EFAMA responds 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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IOSCO Publishes a Report on the Second IOSCO Hedge Fund Survey

The International Organization of Securities Commissions 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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ESMA publishes Guidelines on the reporting obligations for alternative investment fund managers (AIFMS)

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 to introduce 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.

In addition to the Guidelines and the Opinion, ESMA has published on its website technical documents that should help regulators and the AIFMs to transmit the requested reporting in a standardised way to national competent authorities and to ESMA.

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.

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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.

Background information: ALFI Newsflash of 10 July 2013

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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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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.

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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.

Upcoming ALFI events

4-6 November: ALFI Roadshow to US (Boston & New York)

Monday 4th November - seminar in Boston at the Boston Harbor Hotel

Tuesday 5th November - cocktail reception in New York at the Essex House (JW Marriott)

Wednesday 6th November - seminar in New York at the Essex House (JW Marriott)

Programme & Registration

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12 November: ALFI Roadshow to Frankfurt

Programme & Registration

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14 November: ALFI TA & Distribution Forum

The key theme of this 7th edition is: Still swimming in a sea of regulatory and industry developments...

Programme

Participation for ALFI members is free of charge. Please refer to the registration details sent to you last Friday, 18th of October.

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19-20 November: ALFI European Alternative Investment Funds Conference

Already 450 registrations!

Programme & Registration

Exhibition opportunities 

35 exhibitors confirmed!

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

Programmes & Invitation

 

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

Sponsorship opportunities until 31st October 2013

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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ALFI events calendar

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4.

Past ALFI events

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.

 

 

 

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5.

ALFI 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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6.

Upcoming LFF events

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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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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7.

Other upcoming events

Conference: "Finance and Human Dignity - What Rights, What Duties?"

"Finance and Human Dignity - What Rights, What Duties?" is the title of a conference organised by the UNESCO Chair in Human Rights and the Luxembourg School of Finance, with the support of the ABBL and the "Institut luxembourgeois des Droits de l'Homme" on 5 November 2013 at the University of Luxembourg Campus Kirchberg.

The conference will bring together bankers and human rights experts in one forum to discuss the impact, at micro and macro levels, of finance on human rights and human dignity as well as the impact of human rights and human dignity on finance.

Jean-Jacques Rommes, CEO of the ABBL, will be among the speakers and will explore the issue of "Financial secrecy and human rights": "Secrecy in financial matters seems to have died. After having been under attack for many years, its image has reached such a nadir that you now need courage to even dare defending it. We have forgotten that its roots lie deep in our traditions and moral values. Is it still possible to qualify this despised concept as a human right?"

Participation is free of charge. Advance registration is required.

Please register by e-mailing to lsf-events@uni.lu.

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