Investment Funds

This tracker contains links to the key responses to the MiFID II legislative proposals and related consultation papers, including those pre-dating publication of the proposals. It includes links to responses from trade and consumer bodies as well as other interested stakeholders, including the FSA and UK government.

This practice note is one of two notes summarising the European Commission's consultation proposals to amend the requirements of the Markets in Financial Instruments Directive (2004/39/EC) and its implementing legislation, which were published in October 2010 following the Commission's review of the effectiveness of the Directive. This note focuses specifically on the proposals that will impact on market structure and the way those markets, and those operating within them, function. It includes proposals to enhance requirements relating to the disclosure of trade transparency data, transaction reporting, the trading of derivatives on organised venues, oversight of derivatives trading and commodity derivative markets. This note does not comment on the Commission's legislative proposals to amend MiFID, which were published in October 2011. For details of the legislative proposals, see Practice note, Hot topics: MiFID II.

In this checklist, Karen Anderson, Partner, and Sarah Thomas, Senior Associate, in Herbert Smith Freehills' Financial Services Regulatory Group, and Patricia Horton, a professional support lawyer in that group, consider the Supreme Court's February 2012 judgment on the administrators' client money application in the matter of Lehman Brothers International (Europe) (LBIE): Re Lehman Brothers International (Europe) (in administration) [2012] UKSC 6. The judgment has a number of implications for firms that hold client money, as well as for firms that hold money with banks and other firms as clients themselves. For a summary and analysis of the key points of the judgment and its implications, see Article, Lehman client money judgment: Supreme Court upholds Court of Appeal decision.

The AIFM Directive and UCITS IV Directive must be transposed into national legislation by EU member states by mid-2013. Among other things, this will require EU asset managers to only market collective investment schemes in non-EU jurisdictions which are adequately supervised. Because of the importance of foreign collective investment schemes to Switzerland, Switzerland introduced significant amendments to its laws governing collective investment schemes, which came into force on 1 March 2013, in large part to bring them into line with EU law. Importantly, certain distribution activities and certain foreign collective investment schemes (particularly those marketed to high net-worth individuals or companies with professional treasury operations) which were previously unregulated will now be regulated. This article examines the reasons for these amendments, the details of the amendments, and their practical implications. This article is part of the PLC multi-jurisdictional guide to investment funds. For a full list of jurisdictional Q&As visit www.practicallaw.com/investmentfunds-mjg.

A Q&A guide to investment funds law in Brazil. This Q&A is part of the PLC multi-jurisdictional guide to investment funds. It provides a high level overview of investment funds in Brazil, looking at both retail funds and hedge funds. Areas covered include a market overview, legislation and regulation, marketing, managers and operators, restrictions and requirements, tax and upcoming reform. To compare answers across multiple jurisdictions, visit the Investment funds Country Q&A tool. For a full list of jurisdictional Q&As visit www.practicallaw.com/investmentfunds-mjg.

A Q&A guide to investment funds law in Gibraltar. This Q&A is part of the PLC multi-jurisdictional guide to investment funds. It provides a high level overview of investment funds in Gibraltar, looking at both retail funds and hedge funds. Areas covered include a market overview, legislation and regulation, marketing, managers and operators, restrictions and requirements, tax and upcoming reform. To compare answers across multiple jurisdictions, visit the Investment funds Country Q&A tool. For a full list of jurisdictional Q&As visit www.practicallaw.com/investmentfunds-mjg.

A Q&A guide to investment funds law in Jersey. This Q&A is part of the PLC multi-jurisdictional guide to investment funds. It provides a high level overview of investment funds in Jersey, looking at both retail funds and hedge funds. Areas covered include a market overview, legislation and regulation, marketing, managers and operators, restrictions and requirements, tax and upcoming reform. To compare answers across multiple jurisdictions, visit the Investment funds Country Q&A tool. For a full list of jurisdictional Q&As visit www.practicallaw.com/investmentfunds-mjg.

A Q&A guide to investment funds law in Portugal. This Q&A is part of the PLC multi-jurisdictional guide to investment funds. It provides a high level overview of investment funds in Portugal, looking at both retail funds and hedge funds. Areas covered include a market overview, legislation and regulation, marketing, managers and operators, restrictions and requirements, tax and upcoming reform. To compare answers across multiple jurisdictions, visit the Investment funds Country Q&A tool. For a full list of jurisdictional Q&As visit www.practicallaw.com/investmentfunds-mjg.

A Q&A guide to investment funds law in the United States. This Q&A is part of the PLC multi-jurisdictional guide to investment funds. It provides a high level overview of investment funds in the United States, looking at both retail funds and hedge funds. Areas covered include a market overview, legislation and regulation, marketing, managers and operators, restrictions and requirements, tax and upcoming reform. To compare answers across multiple jurisdictions, visit the Investment funds Country Q&A tool. For a full list of jurisdictional Q&As visit www.practicallaw.com/investmentfunds-mjg.

A Q&A guide to investment funds law in Investment Funds in Mexico. This Q&A is part of the PLC multi-jurisdictional guide to investment funds. It provides a high level overview of investment funds in Mexico, looking at both retail funds and hedge funds. Areas covered include a market overview, legislation and regulation, marketing, managers and operators, restrictions and requirements, tax and upcoming reform. To compare answers across multiple jurisdictions, visit the Investment funds Country Q&A tool. For a full list of jurisdictional Q&As visit www.practicallaw.com/investmentfunds-mjg.

A Q&A guide to investment funds law in Argentina. This Q&A is part of the PLC multi-jurisdictional guide to investment funds. It provides a high level overview of investment funds in Argentina, looking at both retail funds and hedge funds. Areas covered include a market overview, legislation and regulation, marketing, managers and operators, restrictions and requirements, tax and upcoming reform. To compare answers across multiple jurisdictions, visit the Investment Funds Country Q&A tool. For a full list of jurisdictional Q&As visit www.practicallaw.com/investmentfunds-mjg.

This Article provides an overview of the Foreign Account Tax Compliance Act's (FATCA's) impact on foreign funds and other foreign investment entities, in light of proposed regulations released in February 2012 by the IRS and Treasury Department.

The Grand Court of the Cayman Islands has found two directors of a failed investment fund liable in damages for the fund's losses caused by their breaches of duty. The judgment contains important commentary on directors' practices and procedures, although the implications for well-advised funds with competent and diligent directors are limited and the judgment is subject to appeal. However, all directors should revisit their practices to ensure they remain consistent with key corporate governance principles. This chapter examines the Weavering case and directors' duties, the court's findings on directors' duties, and guidance for directors of Cayman Islands investment funds. This article is part of the PLC multi-jurisdictional guide to investment funds. For a full list of jurisdictional Q&As visit www.practicallaw.com/investmentfunds-mjg.

This article considers recent trends in the hedge funds market of the Cayman Islands, providing an overview of both the key market trends and legal developments during 2011. Particular emphasis is given over to corporate governance and regulatory developments. This article is part of the PLC multi-jurisdictional guide to investment funds. For a full list of jurisdictional Q&As visit www.practicallaw.com/investmentfunds-mjg.

A Q&A guide to investment funds law in Canada. This Q&A is part of the PLC multi-jurisdictional guide to investment funds. It provides a high level overview of investment funds in Canada, looking at both retail funds and hedge funds. Areas covered include a market overview, legislation and regulation, marketing, managers and operators, restrictions and requirements, tax and upcoming reform. To compare answers across multiple jurisdictions, visit the Investment Funds Country Q&A tool. For a full list of jurisdictional Q&As visit www.practicallaw.com/investmentfunds-mjg.

A Q&A guide to investment funds law in France. This Q&A is part of the PLC multi-jurisdictional guide to investment funds. It provides a high level overview of investment funds in France, looking at both retail funds and hedge funds. Areas covered include a market overview, legislation and regulation, marketing, managers and operators, restrictions and requirements, tax and upcoming reform. To compare answers across multiple jurisdictions, visit the Investment Funds Country Q&A tool. For a full list of jurisdictional Q&As visit www.practicallaw.com/investmentfunds-mjg.

A Q&A guide to investment funds law in Hong Kong. This Q&A is part of the PLC multi-jurisdictional guide to investment funds. It provides a high level overview of investment funds in Hong Kong, looking at both retail funds and hedge funds. Areas covered include a market overview, legislation and regulation, marketing, managers and operators, restrictions and requirements, tax and upcoming reform. To compare answers across multiple jurisdictions, visit the Investment funds Country Q&A tool. For a full list of jurisdictional Q&As visit www.practicallaw.com/investmentfunds-mjg.

A Q&A guide to investment funds law in Ireland. This Q&A is part of the PLC multi-jurisdictional guide to investment funds. It provides a high level overview of investment funds in Ireland, looking at both retail funds and hedge funds. Areas covered include a market overview, legislation and regulation, marketing, managers and operators, restrictions and requirements, tax and upcoming reform. To compare answers across multiple jurisdictions, visit the Investment Funds Country Q&A tool. For a full list of jurisdictional Q&As visit www.practicallaw.com/investmentfunds-mjg. 

A Q&A guide to investment funds law in Japan. This Q&A is part of the PLC multi-jurisdictional guide to investment funds. It provides a high level overview of investment funds in Japan, looking at both retail funds and hedge funds. Areas covered include a market overview, legislation and regulation, marketing, managers and operators, restrictions and requirements, tax and upcoming reform. To compare answers across multiple jurisdictions, visit the Investment funds Country Q&A tool. For a full list of jurisdictional Q&As visit www.practicallaw.com/investmentfunds-mjg.

A Q&A guide to investment funds law in Singapore. This Q&A is part of the PLC multi-jurisdictional guide to investment funds. It provides a high level overview of investment funds in Singapore, looking at both retail funds and hedge funds. Areas covered include a market overview, legislation and regulation, marketing, managers and operators, restrictions and requirements, tax and upcoming reform. To compare answers across multiple jurisdictions, visit the Investment funds Country Q&A tool. For a full list of jurisdictional Q&As visit www.practicallaw.com/investmentfunds-mjg.

A Q&A guide to investment funds law in The Netherlands. This Q&A is part of the PLC multi-jurisdictional guide to investment funds. It provides a high level overview of investment funds in The Netherlands, looking at both retail funds and hedge funds. Areas covered include a market overview, legislation and regulation, marketing, managers and operators, restrictions and requirements, tax and upcoming reform. To compare answers across multiple jurisdictions, visit the Investment funds Country Q&A tool. For a full list of jurisdictional Q&As visit www.practicallaw.com/investmentfunds-mjg.

Following the global financial crisis South Africa has seen numerous financial sector regulatory reforms. The regulatory reforms with an impact on investment funds, and more specifically collective investment schemes and hedge funds, are: General financial sector reforms. White labelling of collective investment schemes. Pension fund investment in hedge funds. This article provides an overview of each of the reform initiatives. This article is part of the PLC multi-jurisdictional guide to investment funds. For a full list of jurisdictional Q&As visit www.practicallaw.com/investmentfunds-mjg.

This article considers the development of exchange traded funds (ETFs), what they are and why they are so popular, as well as the nature of regulatory concerns about ETFs, and whether this concern is justified.

The United States update for June 2011 for the PLC Global Finance multi-jurisdictional monthly e-mail.

A Q&A guide to investment funds law in Malta. This Q&A is part of the PLC multi-jurisdictional guide to investment funds. It provides a high level overview of investment funds in Malta, looking at both retail funds and hedge funds. Areas covered include a market overview, legislation and regulation, marketing, managers and operators, restrictions and requirements, tax and upcoming reform. For a full list of jurisdictional Q&As visit www.practicallaw.com/investmentfundshandbook.

A Q&A guide to investment funds law in Sweden. This Q&A is part of the PLC multi-jurisdictional guide to investment funds. It provides a high level overview of investment funds in Sweden, looking at both retail funds and hedge funds. Areas covered include a market overview, legislation and regulation, marketing, managers and operators, restrictions and requirements, tax and upcoming reform. For a full list of recommended investment fund lawyers and law firms in Sweden, see PLC Which lawyer? For a full list of jurisdictional Q&As visit www.practicallaw.com/investmentfundshandbook. 

This chapter considers Sharia funds and Sharia-compliant investments, including the analysis of structuring and marketing a Sharia-compliant investment fund. This chapter is part of the PLC multi-jurisdictional guide to Investment Funds, which can be found at  www.practicallaw.com/investmentfunds-mjg.

Regulation promises to be the hot topic of 2010, with both EU and US lawmakers looking to bring private equity fund managers within the regulatory net. This article looks at the different approaches proposed on each side of the Atlantic, and considers the impact of the proposals for private equity firms operating on a global basis. 

The current financial crisis has led to a global reconsideration of the need for increased regulation in all aspects of the financial markets. This chapter considers the likely impact on hedge fund regulation and best practices (from disclosure of key terms to investors, to valuing hard-to-value assets, to dealing with conflicts of interest).

Following the recent approval of UCITS IV by the European Parliament in January 2009, this chapter discusses: the benefits, costs and intricacies of offering UCITS for sale globally; cross-border registration of UCITS within the EU; cross-border registration of UCITS outside the EU; and the impact of proposed changes to the UCITS regime (UCITS IV) on cross-border registration.

An overview of the impact on fund managers and funds of Directive 2003/48/EC on taxation of savings income in the form of interest payments (EC Savings Directive) and the related savings taxation agreements concluded with third countries and associated territories.

On 1 April 2013, the FSA will be abolished and the majority of its functions transferred to two new regulators: the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). On the same date, the Bank of England (BoE) will take over the FSA's responsibilities for financial market infrastructures and the Financial Policy Committee (FPC) will be established on a statutory basis.

The Islamic Financial Services Board (IFSB) has published for consultation exposure drafts on the standard on risk management for Islamic insurance (Takaful) undetakings and on the standard for revised capital adequacy for institutions offering Islasmic financial services.

The European Commission has published a green paper on shadow banking, consulting on its regulatory approach to shadow banking entities and activities. (Free access.)

An article has been published on ft.com, reporting that a coalition of trade associations has jointly commissioned a study into the viability of establishing a mutual recognition regime between US and European regulators.

The Financial Stability Board has published a report setting out its recommendations on strengthening the oversight and regulation of shadow banking.

The G20 finance ministers and central bank governors have published a communiqué following their meeting in Paris on 14 and 15 October 2011.

This article is part of the Global Finance July 2011 e-mail update for the United States. 

An update on the SEC approving final rules and rule amendments under the Investment Advisers Act of 1940 to implement provisions under Title IV of the Dodd-Frank Act relating to new SEC registration and reporting requirements for certain investment advisers to private funds, new exemptions to the registration requirement and related definitions.

The Islamic Finance Standards Board (IFSB) has announced that it has adopted two new guidance notes relating to IFSB capital adequacy standards, and the recognition of ratings by external credit assessment institutions on Takaful and ReTakaful undertakings. 

The Council of the EU has published a press release announcing that the legislation reforming the EU supervisory framework was adopted at a meeting of the Economic and Financial Affairs Council on 17 November 2010.

An update on a speech by CFTC Chairman Gary Gensler indicating that swap regulations implemented under Dodd-Frank will apply to foreign banks doing business in the US.

The government has announced major changes to the UK's financial services regulatory structure including the abolition of the FSA in its current form.

On 21 April 2010, the BBC published on its news website a copy of an interim report prepared by the International Monetary Fund entitled: "A fair and substantial contribution by the financial sector".