Regulation
Duty deficit
In a Dear CEO letter to wealth managers and stockbrokers, the Financial Conduct Authority (FCA) has pointed out failings in adherence to the Consumer Duty regulations, and its expectations going forward.
And new research from Royal London and The Lang Cat investigates some of the impacts of Consumer Duty, including that 37% of advisers have changed their fee structure following fair value assessments.
Alternative disclosures
A new private members’ bill proposing a change in charge disclosure rules for investment companies would mean they would no longer be classified as alternative investment funds. Ignites Europe reports on the move aimed to increase holdings in investment companies by pension funds and retail investors.
Eltif tiff
The regulatory and technical standards for the updated European Long Term Investment Funds scheme, Eltif 2.0, are causing discord among European regulators according to Investment Officer.
Supervisory scrutiny
Central Bank of Ireland Director of securities and markets supervision, Patricia Dunne, has indicated the funds sector can expect greater scrutiny of product risks going forward. Her recent speech at the Irish Funds Asset Management Forum is covered in Ignites Europe.
Private credit concerns
Pimco executives interviewed in Bloomberg voice concerns that regulators aren’t doing enough to manage the growing risks of the $1.6 trillion global private credit market, and that a lack of transparency and oversight is posing investor risks. Ignites Europe also reports.
Sustainable Investment/ESG
Hot off the press!
The Financial Conduct Authority (FCA) has published the findings from its supervisory work looking at how authorised fund managers (AFMs) comply with existing regulatory requirements and expectations on the design, delivery and disclosure of Environmental, Social and Governance (ESG) and sustainable investment funds.
FBC members are invited to join us on 5th December at 2pm to hear from the FCA’s Christopher Davis, Head of Asset Management & Funds Market Interventions, and Senior Associate, Fiona Law, to discuss the findings of their multi-firm review of authorised fund managers (AFMs) and ESG & sustainable investment funds at FBC’s corporate member digital event Authorised ESG & Sustainable Investment Funds – Multi-firm review.
Awaiting ratings
Following a three-month consultation, Ministers intend to unveil formal proposals on regulation of ESG providers as early as January next year, according to the FT. Concurrently, the International Regulatory Strategy Group (IRSG)-led consultation for ESG data and rating providers is expected to publish its voluntary Code of Conduct by year end.
Investor incredulity
Corporate sustainability claims are brought into question in PWC’s 2023 Global Investor Survey.
Clarification anticlimax
The European Commission statement clarifying how asset managers should determine whether investments were sustainable or not, made in April, has failed to have the anticipated impact on Article 9 fund upgrades, the FT reports.
Directing sustainability
A keynote address by the FCA‘s Manager ESG Policy & Advisory, Sarah Woodroffe, on the direction of travel on Sustainability Disclosure Regime (SDR) and following Q&A are worth a watch.
Market News
Apex amplification
Apex Group has announced its expansion after securing $400million in term debt. Aiming to boost liquidity and further organic and inorganic growth, more details are in Investment Officer.
Evenlode intent
Evenlode has terminated its contract with Waystone and signed a letter of intent to appoint Marlborough’s Investment Fund Services (IFSL), as the authorised corporate director for its three UK-domiciled funds; Evenlode Income, Evenlode Global Income and Evenlode Global Equity. The move, reported in Investment Week, is subject to regulatory approval.
Cyber risk repercussions
The repercussions of the ransomware attack on a New York unit of the Commercial Bank of China (ICBC), which disrupted trading in the $25tn market for US Treasuries, are scrutinised in the Financial Times.
UCITS under delivery
Only half of UCITS ETFs are currently profit-making based on assets and fees, according to research by ETF Stream.
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