Swiss Association of Wealth Managers (SAM)’s Post

🔍 Breaking news on the ELTIF regulation 🇪🇺 Worried about the protection of European investors, illiquid investments, and financial stability, the European Securities and Markets Authority (ESMA) is advocating for significant modifications to the Eltif standards rulebook. 📈 Based in Paris, ESMA has voiced concerns over the European Commission's "flexible" approach to finalizing the standards for the new category of funds aimed at opening private markets to retail investors. In a direct communication on Monday, ESMA expressed its dissatisfaction with Brussels view of the draft regulatory technical rules - known as the Level 2 RTS - for the EU’s revised regime for European Long-Term Investment Funds (Eltifs). 📜 As professionals in finance and investments, it's crucial to stay informed about these regulatory developments that impact investor protection and market accessibility. What are your thoughts on this more stringent stance by ESMA? Does it strike a balance? Or will it impede the launch of new funds? #ELTIF #ELTIF2 #ESMA #MarketFinance #CMU #RTS #Level2 #Luxembourg #privatemarkets #privatedebt #privateequity #EuropeanMarket https://lnkd.in/eu_z8npa

⚡ Adjustments Are Coming to Crypto Assets - Discussions of the Bill on Amendments to the Capital Markets Law, which includes regulations regarding crypto assets, started in the Grand National Assembly of Turkey Planning and Budget Commission.

🔴 ESMA makes recommendations for more effective and attractive capital markets in the EU. We focus on 3 dimensions: citizens, companies and the EU regulatory and supervisory framework. The actions are directed not only to capital market supervisors but also to EU Member States, the European Commission and EU Co-legislators as well as to the financial industry → https://lnkd.in/dkVFSH7t. 🗨️ Verena Ross, ESMA Chair: Creating effective and attractive EU capital markets requires improving the wider market ecosystem and putting investors and companies at the heart of it. Steps are needed to ensure capital markets can play their role in supporting the financing needs of Europe. Therefore, ESMA today puts forward proposals for how markets can serve the needs of European citizens and businesses. Recommendations 👇

📑📃Many reports have been released in recent months on the topic of the #competitiveness of the #EUcapitalmarket, and others will be released shortly. However, today a different report was released because it is the result of the contribution of European Securities and Markets Authority (ESMA) and the #NCA. 🔎A real view from the inside.

The European Securities and Markets Authority (ESMA) has proposed revisions to the European Long-Term Investment Fund (ELTIF) Technical Standards in response to the European Commission's request. Aimed at better balancing investor protection with contributions to the Capital Markets Union, the adjustments focus on refining redemption policies and liquidity management tools. This proposal follows the Commission's suggestions for a more tailored approach based on the unique characteristics of each ELTIF. ESMA's revised drafts are now under review by the European Commission, with potential objections by the European Parliament and the Council pending within the next three months. For more regulatory updates and detailed insights, subscribe to Global Regulatory Insights and stay informed. https://lnkd.in/gbM6hjGC #ESMA #ELTIF #CapitalMarkets #InvestorProtection #FinanceNews

📢 News about ELTIF: European Commission's requests more flexibility from ESMA in the RTS The revised ELTIF regulation came into force on 10 January 2024. Still outstanding at present, however, are the so-called regulatory and technical standards (RTS) that provide further details in particular about the rules that open-ended ELTIFs have to comply with. The European regulator ESMA proposed a first draft of the RTS on 19 December 2023, which was however heavily criticised: It featured rather prohibitive rules on the liquidity requirements for such open-ended ELTIFs, and most noticeably a 12-months notice period for investors to request a redemption of their units. A shorter period would only be allowed if the ELTIF holds significant liquid assets, which would have a very negative impact on its investment policy and therefore profitability, making this not a viable option. Such a long notice period was rightly considered as entirely unpracticable by the industry, and would probably lead to ELTIF remaining the unattractive niche product it was under the first draft of the ELTIF regulation in 2015. The European Commission has now responded to such criticism and told ESMA in a letter addressed to it (link in comments) to amend the draft RTS in order to remove such minimum 12-months notice period, and that the minimum liquidity requirements should be much more flexible. It also informed ESMA that there should be a possibility to use other liquidity management tools than those (very few) that are listed in the draft RTS, and not to restrict the use of gating provisions. This is good news for the ELTIF and will contribute to this product's competitiveness. It is also a surprisingly clear message to ESMA that its excessive micro-regulation and setting out of further hurdles exceeds its mandate and is counter-productive to the aim to establish the ELTIF as an attractive investment product. It can be hoped that ESMA considers this also during the drafting process of the RTS for the revised AIFM Directive. #eltif #investmentfunds VANDENBULKE

For any who have not yet seen, the European Commission is now consulting on the functioning of the EU securitisation framework. This is an important opportunity to provide evidence to help the European authorities adjust the regulatory framework and help revitalise the European securitisation markets. I am delighted to be holding the pen for AFME (Association for Financial Markets in Europe) on its response to the consultation, and would encourage all market participants to engage with it. The consultation is wide-ranging, covering both the EU Securitisation Regulation, prudential matters and suggestions from the Draghi, Letta and Noyer reports for how to encourage greater use of securitisation. These include the introduction of a "securitisation platform" inspired by the GSEs in the United States (Fannie Mae, Freddie Mac, and Ginnie Mae). It is especially important to collect and submit any data you may have to support industry arguments. This is a key to ensuring that the arguments we submit are persuasive and demonstrably grounded in market realities. The deadline to respond is 4 December 2024.

🔔 𝗡𝗲𝘄𝘀𝗳𝗹𝗮𝘀𝗵 | The European Securities and Markets Authority (𝗘𝗦𝗠𝗔) has responded to the European Commission request for amendments to the draft Regulatory Technical Standards (𝗥𝗧𝗦) for the new 𝗘𝗟𝗧𝗜𝗙 𝟮.𝟬 regime. 💡 Discover what the key amendments are by reading our newsflash and feel free to reach out to our experts, Aurélien Hollard, Benjamin Bada, Julia Bruzzese, Harrison Dans, Julien ROBERT or sophie Liberatore if you have any questions ➡️ https://lnkd.in/e3rSBTYj #CMSLuxembourg #CMSLaw #lawfirm #Luxembourg #investmentfunds

Greetings, Today, we shall discuss a document of considerable importance yet infrequently mentioned—the Declaration Form 250.00, also known colloquially as the entry declaration. Upon initial examination, this form may appear complex; however, it is substantially more straightforward in application. Its primary focus is on foreign assets—a critical aspect for any entity engaged in international investments. Key points to remember include: Assets and bank accounts located within Kazakhstan need not be disclosed in this declaration. This simplifies the process significantly for entities conducting business solely within the domestic borders. An important note: securities must be declared irrespective of the country in which the issuer is located. Digital assets must also not be overlooked. This information is particularly valuable for those newly required to submit such a declaration and serves as a reminder for seasoned businessmen and investors. Do not overlook the details that may be crucial to your financial well-being. Kind regards, Aidar Massatbayev

📢 NEWS / Investment Funds: CSSF publishes replacement for 02/77 Circular Today, the Luxembourg regulator CSSF published a replacement for its circular 02/77 that dealt with procedures to be followed in case of a net asset value calculation error or breach of investment restriction, and subsequent compensation of investors. The new circular bears the number 24/856 (link to the circular in the comment section) and will apply as of 1st of January 2025. It integrates a significant number of comments and questions received from the funds industry in the more than 20 years since the initial circular was published, and integrates the various FAQs the regulator had published. Most notably, it now explicitly applies to all types of investment funds available in Luxembourg and which were introduced since 2002, such as SIFs, RAIFs, ELTIFs or SICARs. Different rules apply to each type of such investment products, reflecting the difference in risk appetite and target investors. This comprehensive update of administrative guidelines on such key aspects of the functioning of an investment fund are certainly welcome. The CSSF also mentioned during the recent ALFI conference that dedicated workshops and presentations will be offered by the regulator, in order to enable the industry to become familiar with the new rules. Currently, the new circular is only available in French, an English translation will follow shortly. #InvestmentFunds #vdblaw #law #luxembourg #vandenbulke