ESMA has issued new guidelines concerning fund management companies and alternative investment fund managers
Amendments have been made to FIN-FSA regulations and guidelines 3/2011 Organisation and code of conduct of investment fund activities and 4/2014 Alternative investment fund managers. These amendments incorporate the European Securities and Markets Authority (ESMA) “Guidelines on marketing communications under the Regulation on cross-border distribution of funds” (ESMA34-45-1272) into the FIN-FSA’s set of regulations and guidelines.
The purpose of “Guidelines on marketing communications under the Regulation on cross-border distribution of funds” (ESMA34-45-1272) is to
- specify the application of the requirements for marketing communications set out in Article 4(1) of Regulation (EU) 2019/1156
- establish a common standard for the disclosure of performance fees to investors.
However, the Guidelines do not intend to replace existing national requirements on the information to be included in marketing communications to the extent these are compatible with any existing harmonised EU rules.
The regulations and guidelines concerned will also be amended by updating the references to the updated version of ESMA’s Guidelines on stress test scenarios under Article 28 of Regulation (EU) 2017/1131 of the European Parliament and of the Council of on money market funds (MMF Regulation).
This was the annual update of the Guidelines. In accordance with Article 28(7) of the MMF Regulation, the Guidelines shall be updated at least every year taking into account the latest market developments. The updated Guideline is ”Guidelines on stress test scenarios under the MMF Regulation” (ESMA34-49-291).
In its regulations and guidelines, the FIN-FSA recommends that entities falling within the scope of application of the guidelines comply with the above mentioned ESMA Guidelines.
ESMA has issued Guidelines on the application of Article 25 of the AIFMD
ESMA has published “Guidelines on Article 25 of Directive 2011/61/EU” (ESMA34-32-701). The Guidelines apply to competent authorities. Where a fund meets the criteria specified in the Guidelines, the competent authority must request the fund to provide regular reporting on information indicated in the Guidelines.
The purpose of the Guidelines is to establish consistent, efficient and effective supervisory practices within the European System of Financial Supervision and to ensure the common, uniform and consistent application of Article 25 of the AIFMD. In particular, the Guidelines relate to the assessment of leverage-related systemic risk and aim to ensure that competent authorities adopt a consistent approach when assessing whether the condition for imposing leverage-related measures are met.
Entry into force of the amendments
The amendments to the regulations and guidelines will enter into force as follows:
- On 29 August 2021 as regards “Guidelines on stress test scenarios under the MMF Regulation” (ESMA34-49-291)
- On 2 February 2022 as regards “Guidelines on marketing communications under the Regulation on cross-border distribution of funds” (ESMA34-45-1272)
Guidelines on Article 25 of Directive 2011/61/EU (ESMA34-32-701) has entered into force on 23 August 2021.
For further information, please contact
Kristian Nihtilä, Senior Policy Advisor, telephone +358 9 183 5294 or kristian.nihtila(at)fiva.fi
- Regulations and guidelines 3/2011 Organisation of investment fund activities and code of conduct (in Finnish)
- Regulations and guidelines 4/2014 Alternative investment fund managers (in Finnish)
- Guidelines on marketing communications under the Regulation on cross-border distribution of funds (ESMA34-45-1272)
- Guidelines on stress test scenarios under the MMF Regulation (ESMA34-49-291)
- Guidelines on Article 25 of Directive 2011/61/EU (ESMA34-32-701)