Financial Services Quarterly Report
January 08, 2018
A review of recent developments in the international financial services industry, including:
- UK Asset Managers, Brexit Planning and Supervisory Convergence
- New Singapore Regulatory Regime for Venture Capital Managers Takes Effect
- Trump Administration Unveils its Position on Financial Regulation Reform
- Developments in the Luxembourg Financial Sector
- Hong Kong’s New Asset Management Regulations
- Dechert’s World Compass Launches Commercial Lending Module
- Brexit Resource Center
- U.S. Financial Regulation Reform Tracker
- U.S. Fund Liquidity Risk Management Task Force
UK Asset Managers, Brexit Planning and Supervisory Convergence
Following the UK’s decision to leave the EU, asset management firms of all types and sizes will need to conduct a thorough analysis to understand the potential impact of Brexit. To date, this has been something of a difficult task, not least due to uncertainty as to the future relationship between the UK and the EU in respect of the provision of financial services. Brexit will require asset managers to identify and map out the areas of their business that have cross-border connections both in and outside of Europe, and set out in some level of detail the types of arrangements they currently have in place.
New Singapore Regulatory Regime for Venture Capital Managers Takes Effect
The Monetary Authority of Singapore has announced a lighter-touch regulatory regime for qualifying venture capital fund managers in Singapore. The new regime is aimed at promoting the fund management industry and increasing funding for local early-stage start-ups in Singapore. Under the regime, the admission and ongoing requirements applicable to fund managers have been streamlined by, among other things, reducing the qualification/experience requirements and removing the capital requirements and business conduct rules that had previously applied to all fund managers.
Trump Administration Unveils its Position on Financial Regulation Reform
Upon the inauguration of President Trump, it was widely expected that the Administration and the Republicans controlling both houses of Congress would move aggressively to roll back important elements of the Dodd-Frank Act and its related regulations. This article reviews how financial regulation reform initiatives have unfolded over the course of the year, reviewing actions by Congress and the Administration, as well as Treasury reports on financial services reform.
Developments in the Luxembourg Financial Sector
Luxembourg recently published two important bills to combat money laundering and terrorism financing. One transposes the EU AML4 Directive into Luxembourg law. The second establishes a central register of beneficial owners, which aims to enhance transparency but creates an operational challenge for the Luxembourg fund industry. In a separate development, the Luxembourg Company Law has been reorganised and renumbered.
Hong Kong’s New Asset Management Regulations
The Hong Kong SFC published its Conclusions on its one-year consultation in relation to enhancement of asset management regulation and point-of-sale transparency. In order to align with recommendations of IOSCO and the FSB, the Conclusions introduced new requirements and enhanced existing requirements in the Fund Manager Code of Conduct and the Code of Conduct for Persons Licensed by or Registered with the Securities and Futures Commission. These amendments will significantly impact discretionary account managers.
Dechert’s World Compass Launches Commercial Lending Module
Dechert has launched a new Commercial Lending module on its World Compass subscription platform. This supplements existing modules covering the cross-border marketing of funds and investment management services and beneficial ownership reporting. Subscribers have 24/7 access to concise legal, regulatory and practical guidance across more than 100 jurisdictions, presented in an easy-to-use tabular format and updated regularly to ensure accuracy and relevance.
Brexit Resource Center
Lawyer’s in Dechert’s International Trade and EU Law practice bring a uniquely valuable perspective to the legal and commercial analysis of the impact of Breixt.
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.
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.
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