1.
Welcome to Euro Shorts, a short briefing on some of the week’s developments in the financial services
industry in Europe.
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
claire.cummings@cummingslaw.com
www.cummingslaw.com
Legal and regulatory update webinar
A webinar in which Claire Cummings from Cummings Law and Kevin Cummings from BDO
explore key legal and taxation developments that impact the asset management sector will be
available on our website from next week at www.cummingslaw.com/webinars
AIFMD: Annual reports to be submitted under Article 42 marketing
Non-EU AIFMs marketing an AIF in the Netherlands under Article 42 of the AIFMD are required
to submit an annual report for each such AIF to the Dutch regulator, AFM. Article 24(3) only
requires for the annual report to be made available to the local regulator ‘on request’. The
Netherlands position reflects the stance recently taken by Luxembourg, which requires AIFMs
marketing an AIF in Luxembourg under Article 42 to actively submit an annual report to the
Luxembourg regulator, CSSF which similarly requires submission of an AIF’s annual report to its
regulator, BaFIN.
ESMA final report on MiFID II
ESMA has published its final report on draft RTS and ITS relating to authorisation, passporting,
registration of third country firms and co-operation between competent authorities under MiFID
II. The final report covers the majority of the draft ITS and RTS on investor protection topics that
ESMA is expected to develop. The remaining draft technical standards that ESMA is mandated to
develop under MiFID II will be published by the end of 2015. The report sets out the feedback to
the consultation on the MiFID II ITS and RTS, which was published in December 2014.

2. ESMA AML and CTF Q&As on crowdfunding
ESMA has published Q&A to promote the sound, effective and consistent application of EU rules
on AML and counter-terrorist financing (CTF) to investment-based crowdfunding. In carrying
out its programme of work on crowdfunding, ESMA has identified a need to clarify the extent of
the risks involved in investment-based crowdfunding relating to the potential for money
laundering and terrorist financing. ESMA clarifies that not all investment-based crowdfunding
platforms have the same regulatory status; those platforms operating within the scope of MiFID
are automatically subject to AML and CTF rules under the Third Money Laundering Directive,
thus the Q&As seek to clarify the status of other non-MiFID platforms, by analysing the potential
risks and issues arising in different cases and their treatment under applicable EU rules.
EMIR interoperability provisions should be extended to ETDs
ESMA has proposed that interoperability provisions between EU-based CCPs should be extended
to exchange-traded derivatives. The current scope of EMIR covers transferable securities and
money-market instruments and ESMA has submitted its final report to the European Commission
on the extension of the scope of interoperability arrangements to transactions in classes of other
financial instruments. ESMA examines the reasons for extending the current EMIR framework to
derivatives in its report and concludes that its scope should be extended to ETDs, but not yet to
OTC derivatives.
IOSCO consultation on fees and expenses of investment funds
IOSCO is consulting on elements of international regulatory standards on fees and expenses of
investment funds. The consultation paper proposes an updated set of common international
standards for best practice for the operators of collective investment schemes and regulators to
consider and builds on recommendations made in IOSCO's November 2004 paper on best practice
standards for CIS. Issues covered include: types of permitted fees and expenses, performance-
related fees; disclosure of fees and expenses; transaction costs; and hard and soft commissions on
transactions. The paper is aimed at funds whose shares or units are permitted to be sold to retail
investors. Funds intended for professional investors only are not within scope. Comments are
invited by 23 September 2015.
FATF update
FATF has outlined its objectives for the plenary year July 2015 to June 2016, which identifies
seven priorities, including reinforcing the global AML and CTF network. In this regard, it has
recently published a public statement on high risk and non-co-operative jurisdictions, which
identifies jurisdictions with strategic deficiencies relating to AML and combating CFT as part of
its ongoing work to identify jurisdictions that pose a risk to the international financial system.
Further, FATF has published details of its plenary meeting held in Brisbane between 24 to 26
June 2015, during which it adopted guidance for a risk-based approach to virtual currencies and a
typologies report on the money laundering and terrorist financing risks and vulnerabilities
associated with gold, although the report has not yet been made publicly available.
ESMA opinion on Greek short selling prohibition

3. The Hellenic Capital Market Commission (HCMC), the Greek securities regulator, notified
ESMA this week that it intended to make a temporary prohibition on the short selling of shares
admitted to trading on the Athens Exchange and the EN.A. The measure applies to any person
irrespective of their country of residence and does not envisage any exemption for market maker
activities. The measure is expected to enter into force on 30 June 2015 and apply until 6 July
2015. ESMA is required to issue an opinion on whether it considers the measure necessary to
address the exceptional circumstances and has confirmed that the measure is appropriate and
proportionate to address the current threats to market confidence in Greece and that the duration
of the measure is justified.
Greek referendum update
Greece will hold a referendum on Sunday on whether to accept or reject proposals made by its
creditors last week. The Greek government is urging its people to vote ‘No’ as it believes such a
vote would bolster its position in bailout negotiations. Prime Minister Tsipras insists that the
referendum is an exercise in democracy and will not affect Greece’s eurozone membership;
however, EU leaders have framed the vote as a consultation on whether Greeks want to stay in or
not, adding that the referendum question relates to a bailout package that is no longer available to
Greece, having expired on Tuesday. Current surveys this morning suggest that Greece is almost
evenly split over the referendum and too close to call, although a 'Yes' result may possibly be
ahead.
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Cummings
Tel: + 44 20 7585 1406