Financial Services Quarterly Report: Third Quarter 2018
A review of recent developments in the international financial services industry, including:
- A Comparative Review of U.S. and International Fund Liquidity Regulation through the Lens of IOSCO’s Recommendations for Liquidity Risk Management
- A Break from the “B” Word – LIBOR and Benchmark Reform – Progress has the Wind in its Sails
- Hong Kong Facilitates Market Development by Introducing Open-Ended Fund Structure
- Developments in the Luxembourg Financial Sector
- Cryptocurrency and Blockchain Tracker
- U.S. Financial Regulation Reform Tracker
- Dechert’s World Compass
A Comparative Review of U.S. and International Fund Liquidity Regulation through the Lens of IOSCO’s Recommendations for Liquidity Risk Management
The U.S. SEC’s liquidity risk management rule and related disclosure requirements were among the many fund liquidity requirements taking shape globally. This article provides a review of global regulatory developments preceding the rule's adoption, compares elements of the SEC rule and disclosure regime with key features of recommendations by the Board of IOSCO, and includes comparisons with certain aspects of liquidity risk management regulation and guidance from the Hong Kong SFC, UK FCA, French AMF and Ontario OSC.
A Break from the “B” Word – LIBOR and Benchmark Reform – Progress has the Wind in its Sails
Six months have now passed since publication of the Dechert OnPoint, LIBOR – Where Are We Now?, and in that period progress on benchmark reform and the development of alternative risk-free-rates (RFRs) has gathered pace. At a time when much discussion is focussed on Brexit and what March 2019 will bring, LIBOR, benchmark reform and the alternative RFRs have never been far from the headlines.
Hong Kong Facilitates Market Development by Introducing Open-Ended Fund Structure
In Hong Kong, which is increasingly a popular jurisdiction for fund distribution, investment funds historically have been established in the form of offshore mutual funds, segregated portfolio companies or limited liability partnerships. To further develop Hong Kong into a full-service asset management hub, the Hong Kong government introduced an open-ended fund company structure, which became effective on 30 July 2018.
Developments in the Luxembourg Financial Sector
Luxembourg has transposed MiFID II into its national law, with a delay of five months. In other matters, the Luxembourg supervisory authority, the CSSF, issued two circulars in August: one reshaping the organisational rules for Luxembourg UCITS management companies, self-managed UCITS, authorised AIFMs and internally managed IAFs; the second, providing guidance as to the requirements for Luxembourg depositaries servicing certain Luxembourg AIFs as well as SIFs and SICARs that do not qualify as AIFs.
Cryptocurrency and Blockchain Tracker
Cryptocurrencies and the encrypted, decentralized blockchain protocol that underpins them have grown from abstract theories to a transformational force that is disrupting the way many industries will operate for decades to come. To assist our clients around the globe in navigating this rapidly evolving space, Dechert has launched a Cryptocurrency and Blockchain Technology website. Subscribe to Tracker updates.
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 Compass
World Compass is a web-based subscription service that offers investment firms 24/7 access to concise global marketing and distribution guidance in approximately 100 jurisdictions worldwide, updated regularly to ensure accuracy. World Compass modules cover: commercial lending; cross-border marketing of funds and investment management services; and beneficial ownership reporting.
