Financial Services Quarterly Report
June 22, 2017
A review of recent developments in the international financial services industry, including:
- Increasing Focus on European ETFs
- Hong Kong Consultation on Guidelines on Online Distribution and Advisory Platforms
- U.S. CFTC Takes Steps to Modernize Rules and Operations and to Reduce Regulatory Burdens
- A New Lease of Life for Limited Partnerships in the UK
- China Cybersecurity Law: Key Takeaways for Financial Services Firms in China
- Upcoming and Recent Events
- U.S. Fund Liquidity Risk Management Task Force
- U.S. Financial Regulation Reform Tracker
- Dechert’s World Passport
Increasing Focus on European ETFs
In connection with the rise of passive investment strategies and the growing momentum of investment in exchange-traded funds, the Central Bank of Ireland has released a fact-finding Discussion Paper on ETFs. The matters raised may provide insight as to the regulatory thinking and priorities that may impact ETFs at both a European and global level.
Hong Kong Consultation on Guidelines on Online Distribution and Advisory Platforms
As the use of online platforms for distribution of financial products has become increasingly popular in Hong Kong, in May 2017 the Securities and Futures Commission issued a Consultation Paper and proposed guidelines, which potentially affect a broad variety of fund managers and distributors.
U.S. CFTC Takes Steps to Modernize Rules and Operations and to Reduce Regulatory Burdens
Against a backdrop of changing markets, rapidly evolving technology and increased jurisdiction, in May 2017 the Commodity Futures Trading Commission amended its recordkeeping rules to modernize them, and launched a “fintech” initiative as well as an initiative to reduce regulatory burdens on market participants.
A New Lease of Life for Limited Partnerships in the UK
Recent legislative changes could reinvigorate the use of partnerships for private funds in the UK. An order introducing the concept of a private fund limited partnership came into force in April 2017, reducing many administrative burdens associated with structuring a private fund as an English or Scottish limited partnership and increasing the UK’s competitiveness in the funds market.
China Cybersecurity Law: Key Takeaways for Financial Services Firms in China
China’s Cybersecurity Law came into force in June 2017, covering a wide range of activities relating to the cyberspace, including personal data protection and security, hacking, malicious software prohibition, handling of emergency network situations, and data localisation. Many of these regulations affect the operation of financial services companies in China.
U.S. Fund Liquidity Risk Management Task Force
Implementing the Securities and Exchange Commission’s fund liquidity risk management rules presents distinct challenges for open-end mutual funds and exchange-traded funds, and compliance with the rules will benefit from careful planning. Dechert’s financial services practice has organized a task force to help clients prepare.
U.S. Financial Regulation Reform Tracker
To assist clients in navigating the reform of the regulation of U.S. financial services by Congress and the Trump Administration, Dechert has created a Financial Regulation Reform Tracker website. Lawyers contributing to the Tracker include members from Dechert’s banking, investment management, derivatives, corporate, securities, finance/securitization, employee benefits and litigation groups. Subscribe to Tracker updates.
Dechert’s World Passport
World Passport is a web-based subscription service that offers UCITS and AIFs registration and advice on distribution globally.
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