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Understanding Investing 简体中文网页 Members section

- Press releases

Luxembourg was awarded “Best Centre for Fund Administration” at the Investment Week Fund Services Awards 2016, held in London on 4 October. The Awards are designed to celebrate cutting edge services and solutions in the fund management industry.

Marc-André Bechet, who collected the award on behalf of the Association of the Luxembourg Fund Industry, said: “This award is a great honour for us and recognition of the work we are doing to support asset managers. Luxembourg’s fund centre is committed to helping asset managers to grow their business globally and we continually look to ensure that we offer leading-edge support.  This year, for example, we have set up the "ALFI FinTech Forum" to identify and analyse the effect of digital and financial technologies on the industry and to identify challenges and opportunities for the fund management industry.

“Investment Week’s award is welcome recognition of the work we are doing in Luxembourg and indeed globally to support the industry.”

Marc-André Bechet, Legal & Tax Director at ALFI collecting the award.

©Photo by Investment Week

Updated on 06/10/16
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- Press releases

The very first edition of the TA & Asset Servicing seminar in Hong Kong was a great success! More than 150 fund industry professionals gathered to exchange on matters focusing on the Fund Distribution Operations value chain.

Speakers at the event

 

Toufik Chaib, Partner, Asset & Wealth Management, PwC Hong Kong
Sebastien Chaker, Managing Director Calastone, Hong Kong
Ching Yng Choi, Head of the ALFI Representative office , Hong Kong
Peng Choy, Vice Chairman, Board of Directors, Harvest Global Investments
Kerry Ching, Managing Director, Asia, AMP Capital
Pieter van Deursen, Strategic Product Development at Robeco Asia
Keith Hale, CEO, Multifonds, Luxembourg
Caroline Higgins, Chairwoman, ALFI TA & Distribution Forum Asia
Rosemarie Kriesel, Managing Director, RBC Investor and Treasury Services, Hong Kong
White Liu, Marketing Manager, Fund Rich Securities Company
Denise Mak, Vice President, Brown Brothers Harriman (Hong Kong) Limited
Aaron Ng, Senior Product Manager, Asia Pacific Fund Services, HSBC, Hong Kong
Olivier Portenseigne, Managing Director & Chief Commercial Officer, Fundsquare, Luxembourg
Michelle Wong, Commercial Director, Compliance Services, APAC, Society for Worldwide Interbank Financial Telecommunication (Swift), Hong Kong
 

What are the key take-aways from the event?

Distribution Panel

The panel highlighted different distribution strategies into key markets in the Asian region. A close attention was paid to the mutual recognition of funds between Hong Kong and Mainland China, as well as on the current development of passporting schemes. It was reported that these schemes are still challenging to reach economy of scale and therefore UCITS products remain the most widely distributed product. However UCITS is not always perfect and sometimes it has to be combined with a local domiciliated product in order to target specific type of clients.

For new managers entering the markets, it is fundamental to have a clear understanding of each jurisdiction of the Asian region, as the strategy applied by existing managers may not be easily replicated.  

KYC / KYD

The industry needs to overcome some difficulties before reaching real efficiency :

  • Long TA onboarding process, including document collection and translation; 
  • lack of harmonization of documents requirements;
  • heavy management of both local regulation requirements and asset managers’ requests vs experienced onboarding staff assessing the investor / product risk.

There are several market initiatives currently under discussion focusing on risk assessment and document collection. Consistency & inclusion of all entity types is key e.g. non institutional investors, which enables all data / documentation to be obtained from a central source. This will be an important milestone to ensure that a successful model is created that can be used globally and within Asia.

Regulatory

PRIIPs, Fatca, CRS, Mifid 2 : This session aimed at demonstrating how these regulations are changing the current market environment and distribution services. The next four years will shape and cement how the future of the asset management industry develops.

Fintech

The panel key word was “Disruption”. An analogy with the evolution of retail and music distribution models set the scene: giant innovators like Amazon and iTunes changed the overall distribution landscape and killed the previous distribution models.

The asset management industry is reaching its limits with tightened regulation and back office complexity. However, the future is shaping: block chain and  big data are two of the major models arising to reduce cost of manufacture and delivery. The need to become digital / fintech focused is key in attracting new investors. An open & forward thinking market is also essential. Fund Promoters / Managers / banks & system vendors must move forward in the digital space, otherwise other players will do it for them e.g. Google / Alibaba

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Updated on 05/10/16
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- ALFI statements

On 23 September 2016, ALFI responded to the Call for evidence on asset segregation and custody services issued by theEuropean Securities and Markets Authority (ESMA) in July this year.

In the meantime, ESMA has published the responses received to the Call for evidence on asset segregation and custody services.

Download the document here.

Updated on 04/10/16
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- ALFI statements

On 21 September 2016, ALFI responded to the consultation “Proposed Policy Recommendations to Address Structural Vulnerabilities from Asset Management Activities” issued by the Financial Stability Board (FSB) in June this year.

ALFI confirmed its support regarding efforts to promote resilient and transparent financial markets and welcomed that the FSB has focused in this consultation on asset management activities. In general, ALFI believes asset management activities do not entail structural vulnerabilities and stressed that, in Europe, the sector is already highly regulated. As such, ALFI does not believe that some of the scenarios envisaged by the FSB, such as securities lending activities, if conducted in accordance with current European standards, or transfer of accounts, present a systemic risk to the functioning of markets.

To view the response, please click here.

Updated on 04/10/16
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- Press releases

Members of the European Parliament (MEPs) adopted on Wednesday a resolution calling for changes to the legislation covering Packaged Retail and Insurance-based Investment Products (PRIIPs). It is now expected that the European Commission submits a new version of the regulatory technical standards (RTS), because the resolution means that the draft RTS will not enter into force in their current form.

Marc-André Bechet, Director Legal & Tax of ALFI says: “We welcome the support expressed by parliamentarians for clearer rules at level 2. In May the European Fund and Asset Management Association (EFAMA) highlighted the need to disclose past performance to investors and also outlined major issues linked to the current calculation and presentation of (transaction) costs. ALFI hopes that these concerns are taken up in a new delegated act from the Commission.”


The vote in plenary was preceded by a debate and vote in the European Parliament’s committee on economic and monetary affairs at the beginning of September, during which MEPs expressed major concerns with the level 2 draft RTS presented by the European Commission end of June 2016. Both the European Parliament and the Council of the EU have a right to object to the rules.


MEPs noted in the resolution that, among other things, if left unchanged, there is a risk that the rules set out in the delegated regulation go against the spirit and aim of the legislation, which is to provide clear, comparable, understandable and non-misleading information on PRIIPs to retail investors. They underlined that the treatment of multi-option products still needs to be clarified, in particular in relation to the explicit exemption granted to UCITS funds under the PRIIPs level 1 Regulation. Moreover, MEPs were of the view that the delegated act as adopted by the Commission contains flaws in the methodology for the calculation of future performance scenarios, and the lack of detailed guidance on the ‘comprehension alert’ creates a serious risk of inconsistent implementation of this element in the key information document across the single market.


The European Parliament therefore has called on the Commission to submit a new delegated act which takes account of the concerns highlighted. In addition, it has called on the Commission to consider a proposal to postpone the level 1 application date (currently set for 31 December 2016) without changing any other provision of level 1 in order to ensure a smooth implementation of the requirements set out in the PRIIPs Regulation and the delegated regulation, and avoid the application of level 1 without RTS being in force in advance.


Marc-André Bechet concludes: “ALFI supports the European Parliament’s calls on the European Commission to present a proposal to postpone the application date of the PRIIPs Regulation, to ensure that the fund industry can implement the regulations for the benefit of retail investors.”

Updated on 22/09/16
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- Webinars

With the recent Brexit developments, there is a sense of uncertainty amongst the investment management industry. This webinar will take a deep dive into the implications of the United Kingdom’s decision to leave the European Union while also highlighting the changes and opportunities that will play out in the industry over the coming months. Gain a better understanding of how Brexit will impact you personally and what you need to do to prepare for the future.

REGISTRATION: 
Space is limited and offered on a first-come, first-served basis. Click here to register for the webinar.

MODERATOR:
Doug Dannemiller, Research Leader, Investment Management, Deloitte

Doug is the head of investment management research at the Deloitte Center for Financial Services in Deloitte Services LP. He is responsible for driving the Center's research platforms and delivering world-class research for our clients. Doug has more than 20 years of experience in research, strategy, and marketing in the investment management and wealth management industries.

 

 

 

PANELISTS:
Hermann Beythan, Partner, Linklaters LLP

Hermann is the head of the Investment Management group of Linklaters Luxembourg where he has been a partner since 1998. Besides his decades-long UCITS practice, he is renowned for his work on cross-border financial services regulation, international private placements and outsourcing arrangements. He advises on the structuring of complex alternative investment fund set-ups and socially responsible fund structures. He is further active in several industry committees (ABBL/ALFI/CSSF) and a regular conference speaker.


 

Vincent Reinhart, Chief Economist, Standish   

Vincent is the Chief Economist for Standish. He is responsible for developing views on the global economy and making relative value recommendations among global bond markets, currencies, and sectors. Previously, he was Chief US Economist and managing director at Morgan Stanley. Read more.

 

 

 

OVERVIEW:
With the recent Brexit developments, there is a sense of uncertainty amongst the investment management industry. This webinar will take a deep dive into the implications of the United Kingdom’s decision to leave the European Union while also highlighting the changes and opportunities that will play out in the industry over the coming months. Gain a better understanding of how Brexit will impact you personally and what you need to do to prepare for the future.
 
In the webinar, the speakers will discuss:

  • Trade Scenarios
  • Complications for the Fund Industry
  • Regulatory Convergence
  • Relationships Abroad

CPE INFORMATION:
NICSA is pleased to offer this webinar learning activity to attendees who are seeking CPE credits. 1 CPE unit may be available for attendees of this webinar. Read more.

Updated on 01/09/16
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Re-domicile your fund onshore: Take the road to Luxembourg

There are many competitive advantages to be achieved by domiciling funds in the right country, including but not limited to reputation, tax efficiency, cost competitiveness, the availability of an experienced workforce and, most importantly, a business-oriented regulatory environment. Nowhere in the world can be found a greater concentration of professional expertise and focus around the fund industry in a business environment so conducive to its development. The flyer provides the reader with an overview with the advantages offered by Luxembourg as a domicile of choice for investment funds.

- ALFI statements

ALFI responded to the ESMA's position paper on "The Distributed Ledger Technology applied to Securities Markets" uploaded to the ESMA website on 30 August 2016.

To view the response, please click here.

Updated on 30/08/16
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- Press releases

A change in wealth allocation and investor attitudes is set to redefine the asset management industry according to the latest paper published by the Association of the Luxembourg Fund Industry (ALFI) and Deloitte Luxembourg, “How can FinTech facilitate fund distribution?”.

The paper found that Millennials and Generation X will account for half of assets under management by 2030 and that their attitudes towards saving and investment will result in asset managers adjusting their future offerings to adapt to and facilitate a new way of investing.

ALFI and Deloitte have identified in their latest report new approaches towards investment and the implications these will have on the asset management industry. New thought patterns, standards and expectations which are substantially different from previous generations will lead to a boom in robo-advice, a change in tailoring portfolios, and a shift in marketing strategies.

Denise Voss, Chairman of ALFI, says: “These behaviours will be a driver for change and the investment management industry has a unique chance to respond to these positive opportunities. Asset managers not only have to consider their offerings in the future, but we are also currently seeing an increasing number of Baby Boomers being influenced by the younger generation’s fresh perspectives. This will result in today’s asset managers having to clearly understand and address the needs of each generation individually.”                   

In addition, the paper found that the new set of investors is seeking to further align their investment portfolios with their social and economic values. Issues such as global warming sit at the forefront of what is important to younger investors, and the report forecasts a sharp movement away from traditional investment in oil and gas to clean-energy industries such as solar and wind. The research also found that Millennials are often willing to accept lower returns in exchange for greater social and environmental impact compared to previous generations.

The DIY attitude of the Millennial investor will also see an important leap in assets under management in the robo-advice space. Over 50 per cent of investors interviewed as part of the research paper cited a lack of trust in advisers and belief in better performance from self-directed investment as the reasons for why they are turning away from traditional advisers and towards robo-advisers. Total assets under management that are managed by robots currently represent less than 0.1 per cent of the €29 trillion investable assets in the US. However, the report predicts this to grow to 10 - 14% by 2025.

Simon Ramos, Partner of Deloitte Luxembourg, says: “The emergence of algorithmic-driven, so-called “robo-advice” and enhanced distribution platforms offer great opportunities for traditional asset managers to re-think their business models. The robo-advisor phenomenon will be a game changer that could result in an overall reduction of fees and create a new digital experience for the end investor. We will continue to see robo-advisers entering the fund distribution ecosystem and Luxembourg’s strongly connected industry players are well-positioned to ensure that Luxembourg remains at the forefront for innovation. Luxembourg’s fund industry must play a leading role in this shift in order to address the future of investment management.”

To download the study, please click here.

Updated on 15/07/16
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- Press releases

New fund structure will provide reduced time-to-market for authorised managers and well-informed investors!

The law introducing a new Luxembourg alternative fund structure, the Reserved Alternative Investment Fund (RAIF), has today been approved by the Luxembourg Parliament and will come into force three days after publication in Luxembourg’s Official Gazette Mémorial

Welcoming the new law, Denise Voss, Chairman of the Association of the Luxembourg Fund Industry, says: “The Luxembourg RAIF Law provides an additional – complementary – alternative investment fund vehicle which is similar to the Luxembourg SIF regime. Unlike the SIF, the RAIF does not require approval of the Luxembourg regulator, the CSSF, but is supervised via its alternative investment fund manager (AIFM), which must submit regular reports to the regulator.

She continues: “Luxembourg managers will therefore have a choice, depending on investor preference.  They can set up their alternative investment funds as Part II UCIs, SIFs or SICARs if they prefer direct supervision of the fund by the CSSF. Alternatively they can set up their alternative investment fund as a RAIF, thereby reducing time-to-market."

Freddy Brausch, Vice-Chairman of ALFI with responsibility for national affairs, adds: “In order to ensure sufficient protection and regulation via its manager, a RAIF must be managed by an authorised external AIFM. The latter can be domiciled in Luxembourg or in any other Member State of the EU. If it is authorised and fully in line with the requirements of the AIFMD, the AIFM can make use of the marketing passport to market shares or units of RAIFs on a cross-border basis. As is the case for Luxembourg SIFs and SICARs, shares or units of RAIFs can only be sold to well-informed investors.

Denise Voss concludes: “The new structure complements Luxembourg’s attractive range of investment fund products and we believe this demonstrates the understanding the Luxembourg legislator has of the needs of the fund industry in order to best serve the interests of investors.“

The law will be published on the website of the Mémorial. Click here to access the legislative history.

Updated on 14/07/16
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