Your SlideShare is downloading. ×
Legal shorts 28.03.14 including Cayman proposes registration and licence regime for directors and EMIR derivative definition
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Legal shorts 28.03.14 including Cayman proposes registration and licence regime for directors and EMIR derivative definition


Published on

Published in: Business, Economy & Finance

  • Be the first to comment

  • Be the first to like this

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. Trouble viewing this email? Read it online Welcome to Legal Shorts, a short briefing on some of the week’s developments in the financial services industry. Listen to this week's Legal Shorts on CLTV by going to If you would like to discuss any of the points we raise below, please contact me or one of our other lawyers. Claire Cummings 020 7585 1406 Cayman proposes registration and licence regime for directors The Cayman Islands government has announced its intention to introduce a registration and licensing regime for directors of certain regulated entities in the Cayman Islands. The proposed new law has been published in the form of The Directors Registration and Licensing Bill 2014 and there is a short consultation period. The proposed law will require all directors of regulated mutual funds and companies which maintain a registration as an excluded person pursuant to the Securities Investment Business Law to register with CIMA. The requirement will apply to both resident and non-resident directors. Directors who hold more than 20 such directorships will need to be licensed by CIMA and will be subject to enhanced regulatory requirements. Corporate directors, irrespective of directorship numbers held, will also need to be licensed by CIMA. Directors to whom the new law will apply will have three months from the date the new law is passed to complete their respective applications and be registered or licensed. The
  • 2. new law could come into effect by mid-April 2014. EMIR derivative definition The European Commission has responded to ESMA’s request for clarification on the definition of derivative under EMIR. The Commission agrees that there is a lack of clarity about the precise delineation between FX forward contracts and currency spot contracts and its preliminary views are: (i) the Commission will need to consider which delivery periods are appropriate when delineating derivative and spot contracts; (ii) ‘commercial purpose’ is only a criterion for physically settled commodity derivative contracts; and (iii) further work is required on the definition of commodity forwards that can be physically settled. FCA reports on hedge fund survey The FCA has published the findings of its hedge fund survey based on data reported at September 2013. The survey presents an aggregated picture of industry activity in the UK, illustrating key trends and risks and includes information on the following: size and scale of the hedge fund industry, size and scale of hedge fund activity in financial markets and portfolio characteristics of hedge funds. The FCA envisages that there will be at least two more versions of the survey with data reported as at March 2014 and September 2014. The AIFMD and its reporting framework are then expected to supersede the FCA survey, providing similar data on a broader range of firms and funds. FCA updates webpage on COBS and COLL The FCA has updated its webpage relating to the modification by consent of COBS and COLL. The modification allows alternative fund managers of a non-UCITS retail scheme (NURS) to choose to produce an equivalent document to the UCITS KIID, the ‘NURS-KII’ document, instead of the key features document or the simplified prospectus. The webpage states that firms which previously held the modification will need to re-apply to the Central Waivers team for a new modification to replace the modification that expires on 30 June 2014. The modification is set out in a direction and is valid until 30 June 2016 unless subsequently withdrawn.
  • 3. EuSEF and EuVECA Regulations ESMA has published Q&As on the application of the EuSEF and EuVECA Regulations. The questions relate to the following: (i) management of EuSEF and EuVECA by AIFMs; (ii) registration of EuSEF and EuVECA managers; and (iii) management and marketing of AIFs by EuSEF and EuVECA managers. ESMA intends to continually edit and update the Q&A as and when new questions are received. It will periodically review the Q&A to identify if, in a certain area, there is a need to convert some of the material into ESMA guidelines. NAO report on FCA and PRA The National Audit Office has published a report that examines the progress made by the FCA and the PRA in developing and implementing their regulatory approaches to date. The NAO recommends, among other things: (i) a more structured approach to evaluation by the FCA and PRA of their work; (ii) establishing a body of evidence with regard to experience of managing potential conflicts between prudential and conduct regulation; (iii) reviewing the effect that staff turnover rates are having in practice; and (iv) evaluation by the FCA and PRA of the impact of their new approaches to regulatory data requests. The NAO was made statutory auditor of the FCA and PRA from April 2013. CRD IV Q&As The European Banking Authority has updated its Q&As on the single rulebook relating to the CRD IV package of reforms and the related technical standards and guidelines developed by the EBA. The Q&As contain 32 answers on supervisory reporting, own funds, large exposures, credit risk, liquidity risk and leverage ratio. ETFs and UCITSs issues ESMA has published its final report on diversification of collateral in its guidelines on exchange traded funds and other UCITS issues. Annex I to the report sets out ESMA's position on collateral management by UCITS. The guidelines in Annex II modify the rules on collateral diversification in paragraph 43(e) of the existing guidelines and introduce some further consequential changes. ESMA has also published an updated version of its
  • 4. Q&As paper on its guidelines on ETFs and other UCITS-related issues and new questions and answers have been added to the financial indices section of the Q&A. EMIR RTS on non-EU counterparties The European Commission delegated Regulation supplementing EMIR with regard to regulatory technical standards (RTS) specifying the contracts that are considered to have a direct, substantial and foreseeable effect within the EU, and to prevent the evasion of rules and obligations, was published in the Official Journal of the EU. The delegated Regulation will enter into force 20 days after the date of its publication in the OJ. However, Article 2 will apply from 10 October 2014. Cummings Tel: + 44 20 7585 1406 Mob: + 44 7734 057 327 28 March 2014