Europe – EU updates
Crypto and digital assets
- Starting off with MiCA, ESMA released an opinion addressing potential risks from global crypto firms seeking authorisation under MiCA for crypto brokerage activities whilst keeping substantial group activities outside of the EU.
- ESMA also issued its final report on the second package of the MiCA regulation.
- Keeping with MiCA, ESMA, the EBA, and EIOPA (collectively the "ESAs"), launched a consultation seeking inputs on templates for explanations and legal opinions templates addressing classification of crypto-assets, as well as a potential standard test to ensure common approaches on crypto-asset classifications.
ESG
- ESMA started Q3 with publishing its final report on the Guidelines on Enforcement of Sustainability Information (“GLESI”) and issued a public statement on the first application of the European Sustainability Reporting Standards (“ESRS”).
- The regulatory body also released an opinion setting out possible long-term improvements for its Sustainable Finance Regulatory Framework.
- The SFDR saw an update to its Q&A on July 25.
- The European Commission published a set of FAQs relating to the implantation of the Corporate Sustainability Reporting Directive (“CSRD”).
Financial Service regulatory and directives updates
- Starting with AIFMD, ESMA launched a consultation focusing on draft regulatory technical standards under AIFMD II and the UCITS Directive, with the aim of harmonising liquidity risk management in the funds industry. The European Systemic Risk Board (“ESRB”) answered a few weeks later.
- Moving to MiFIR, ESMA announced it was launching new consultations aimed at increasing transparency whilst addressing reporting burdens.
- ESMA, the EBA and EIOPA published a second batch of policy documents (regulatory technical standards) focusing on DORA. A few weeks later, the ESAs released their final report on the draft technical standards on subcontracting under DORA.
- ESMA published a 2024 updated version of its ESEF reporting manual.
- ESMA released several Q&As addressing AIFMD, MiCA, MiFID II, and the UCITS Directive.
Europe – Country updates
UK
- In the UK, the FCA released its Policy Statement (PS24/7) setting out the final rules and guidance necessary to implement the Overseas Funds Regime. The regulator also later updated its OFR web page with details on applications processes.
- Further to prior communications, the FCA published a review on the treatment of Politically Exposed Persons (“PEPs”) as well as opened a guidance consultation suggesting proposals to amend FG17/6 in relation to PEPs.
- Moving to the unbundling of investment research, the FCA published a Policy Statement (PS24/9) laying out final rules creating an option to facilitate joint payments for both third-party research and execution services.
- On capital markets, the regulator opened up two consultations: one (CP24/13) focusing on new regime for public offer platforms, and the other (CP24/12) on a new Public Offers and Admission to Trading Regulations regime.
- Keeping with capital markets, the FCA announced final new rules (CP23/31) aimed at simplifying whilst boosting the competitivity of the UK listing regime.
- Switching to Consumer Duty, the FCA issued a call for input to review and potentially simplify retail conduct rules and guidance.
- Moving on to UCITS, the FCA issued a communication aimed towards UK UCITS ManCos applications.
- In a key post-Brexit move, the FCA announced, in light of its upcoming Consumer Composite Investments regulation aimed at replacing the PRIIPS regulation, a forbearance for closed-ended listed investment funds with regards to PRIIPS disclosure requirements and certain other requirements under Articles 50 and 51 of the MiFID Org Regulation.
- The FCA provided an update on good practice and improvement areas as parts of its oversight of Appointed Representatives.
- The awaited consultation on carried interest taxation was launched by HM Treasury.
- On ESG, the FCA released temporary (until April 2, 2025) flexibility measures on the ‘naming and marketing’ sustainability disclosures of its Sustainability Disclosure Requirements (“SDR”) regime. The regulator also launched a consultation (CP24/8) seeking views on extending SDR requirements to portfolio management.
- The FCA also updated its SDR web page by adding downloadable investment labels for distributors that are subject to Handbook rules ESG 4.1.16R – 4.1.19R.
Luxembourg
- The CSSF issued an FAQ on the AML/CFT Summary Report RC (“SRRC”) on compliance with AML/CFT obligations in accordance with Circular CSSF 24/854.
- The CSSF also updated its FAQ on the notification procedures under the Cross Border Distribution of Funds (“CBDF”) regulation.
- On July 11, 2024, the CSSF announced the DORA Law was published in the Official Journal with an application date of January 17, 2025. The CSSF followed-up with a DORA readiness survey later in August.
- Moving to the European Long Term Investment Funds (“ELTIF”) regime, the CSSF announced it would be updating its ELTIF application questionnaire.
- On the AML front, the CSSF released Circular 24/861 adding further clarity on identifications and verification of ultimate beneficial owners.
Malta
- The MFSA published its findings from a Questionnaire issued in relation to Financial Counterparties’ Readiness to report under EMIR Refit.
- The regulator published a Supervision Regulatory Briefing for the attention of investment firms and funds regarding several EU Legislative proposals, consultations, updates to ESMA’s Q&As and feedback report by ESAs.
- The MFSA also released two volumes in its series titled ‘The Nature and Art of Financial Supervision’. The first volume relates to the MFSA’s Supervisory ICT Risk and Cybersecurity (“SIRC”) function and lays out how the MFSA is adapting to the developments in ICT and Cybersecurity in a way that supports both licence holders and supervisory activities, especially in the light of DORA, whilst the second volume focuses of the conduct of marketing oversight, and marketing material supervision.
Americas
USA
- FinCEN issued final rules bringing significant changes on AML requirements for certain investment advisers. (Please see our article for further details).
Cayman Islands
- The Cayman Islands Ministry of Financial Services and Commerce has announced that it would not enforcement of the new requirements under the Beneficial Ownership Transparency Act, 2023, which came into force on July 31, 2024, until 2025. (Please refer to our webinar for more information).
- On August 22, 2024, the Perpetuities (Amendment) Act, 2024 came into force. The act eliminates the mandatory perpetuity period of 150 years for Cayman law ordinary trusts. Existing Cayman law trusts can seek Grand Court approval to extend their duration indefinitely.
- Finally, CIMA published its 2023 Annual Report covering key topics, such as the Cayman Islands’ removal from the FATF grey list, as well as amended guidance notes on the prevention and detection of money laundering, terrorist financing and proliferation financing for virtual asset service providers and around electronic and remote customer due diligence.
Bermuda
- Please refer to our dedicated Bermuda update.
Asia-Pacific
Hong Kong
- The Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) jointly issued their consultation conclusions on the legislative proposal to implement a regulatory regime for fiat-referenced stablecoin issuers in Hong Kong.
- The Hong Kong Stock Exchange also published a consultation seeking feedback on further extending its paperless listing regime.
- Moving to ESG, HKMA published a Circular focusing on good practice and key observations of Authorised Institutions’ governance on climate-related risks.
Singapore
- In late July, the Monetary Authority of Singapore (“MAS”) issued an updated paper on good practices for licensed and exempt financial advisers.
- MAS also announced the setup of a group aimed at strengthening its local equities market by focusing on both reducing burdens as well as strengthening investor confidence.
Australia
- Please refer to our dedicated Australia update.
Middle East and Africa
United Arab Emirates
Mauritius
- Moving to Mauritius, the Financial Services Commission (“FSC”) updated several Acts over the summer (Financial Services Act (FSA), Private Pension Schemes Act, Securities Act, and the Virtual Asset and Initial Token Offerings Services Act).
- Q3 also saw the Anti-Money Laundering and Combatting the Financing of Terrorism and Proliferation (Miscellaneous Provisions) Act 2024 passed, which amended several key regulations.
- Please refer to our eBook to get further insights on Mauritius’ regulatory updates.
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