On 16 March 2022, the European Commission proposed changes to the Central Securities Depositories Regulation to enhance the efficiency of the EU's settlement markets, while safeguarding financial stability. 

The changes proposed by the European Commission are as follows:

• Settlement discipline: a ‘two-step approach’ is introduced under which mandatory buy-ins could become applicable if and when the penalties regime alone does not improve settlement fails in the European Union.
• Banking-type ancillary services: improve conditions under which CSDs can access banking services by amending the threshold for such services and broadening the range of providers for such services.
• Passporting: it simplifies passporting requirements for CSDs, through which they can operate across the EU with one single license by removing costly and duplicative procedures.
• Cooperation between supervisory authorities: It improves cooperation between supervisors by requiring the establishment of colleges of supervisors for certain CSDs increasing consistent and convergent supervision.
• Insight in the activities of third-country CSDs: ending the grandfathering clause and introducing a notification requirement ensures that ESMA and national supervisors have better information about the activities of third-country CSDs in the EU.

The proposal will now be submitted to the European Parliament and the Council for their consideration.

On 25 March 2022, the European Parliament and the Council reached a political agreement on Digital markets Act. 

The DMA is part of the ambitious reform of the digital space together with the Digital Services Act, aiming at ensuring a safe and accountable online environment. Taken together, this package will establish a comprehensive set of new rules for all digital services, including social media, online market places, and other online platforms that operate in the European Union. This is a key component of the European digital strategy to make Europe fit for the digital age. The political agreement reached by the European Parliament and the Council is now subject to formal approval by the two co-legislators. Once adopted, the DMA Regulation will be directly applicable across the EU and will apply six months after entry into force.

On 7 March 2022, the European Commission opene a draft Act recognising Malaysian central counterparty arrangements as equivalent to the EU system.

The draft is open fron 07 March 2022 to 04 April 2022.

On 31 March 2022, the European Securities and Markets Authority (ESMA) published a Memorandum of Understanding (MoU) related to ESMA’s monitoring of the ongoing compliance with recognition conditions by CCPs established in the United Arab Emirates and supervised by the securities and commodities authority.

On 28 March 2022, the European Securities and Markets Authority (ESMA) published a document on cross-border distribution of investment funds.

Regulation (EU) 2019/1156 on facilitating cross-border distribution of collective investment undertakings requires ESMA to publish on its website the hyperlinks to the websites of competent authorities where they publish complete and up-to-date information on the applicable national laws, regulations and administrative provisions governing marketing requirements for AIFs and UCITS, as well as the summaries thereof, and the hyperlinks to the websites of competent authorities where they publish and maintain complete and up-to-date list of the fees and charges they levy for carrying out their duties in relation to the cross-border activities of fund managers.

This document contains both hyperlinks and the summaries of national rules governing marketing requirements, which were provided by competent authorities.

On 28 March 2022, the European Securities and Markets Authority (ESMA) published targeted amendments to some of its Regulatory Technical Standards (RTS 1 and RTS 2) which specify the Markets in Financial Instruments Regulation (MiFIR) transparency requirements for equity and non-equity respectively. These amendments aim to clarify, improve and simplify the transparency regime for equity and non-equity instruments.

ESMA had decided to carry out its review of RTS 1 and RTS 2 in two steps:

• This final report includes a first series of proposed amendments to address issues that have received broad support from stakeholders and/or are considered important in the context of establishing a consolidated tape provider (CTP); and
• A second, and broader, review will be carried out following the MiFIR review which is currently under discussion. It will be focussing on the necessary changes of RTS 1 and 2 in consequence of the MiFIR review and also including the analysis of proposals included in the Consultation Paper published in July 2021 but not covered in this final report.

The reports, generally of interest to all market participants active on EU markets, are submitted officially to the European Commission who will have three months to decide whether to endorse the proposed amendments to the RTS.

On 11 March 2022, the European Commission published Commission Delegated Regulation supplementing Regulation (EU) 2019/2033 of the European Parliament and of the Council with regard to regulatory technical standards for public disclosure of investment policy by investment firms.

Article 52(3) of Regulation (EU) 2019/2033 (‘the Regulation, ‘IFR’) empowers the Commission to adopt, following submission of draft regulatory technical standards by the European Banking Authority (EBA) in consultation with the European Securities and Markets Authority (ESMA), and in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010, delegated acts specifying uniform disclosure formats and associated instructions for the requirements on investment policy by investment firms referred to in Article 52(1) of the IFR.

In accordance with Article 10(1) of Regulation (EU) No 1093/2010 establishing the EBA, the Commission shall decide within three months of receipt of the draft standards whether to endorse the drafts submitted. The Commission may also endorse the draft standards in part only, or with amendments, where the Union's interests so require, having regard to the specific procedure laid down in those Articles.

On 21 March 2022, the European Parliament (EP) published its briefing about the proposal for a pilot regime for market  infrastructure, which will establish a scheme to trade and settle transactions of financial instruments in crypto-asset form. The regime follows the ‘sandbox’ approach that allows for temporary derogations from some specific requirements. This way, the development of solutions for the trading and settlement of transactions in crypto-assets should be encouraged, while preserving a high level of financial stability, transparency and market integrity and avoiding regulatory arbitrage and loopholes.

On 24 March 2022, the European parliament launched a proposal on the pilot regime for market infrastructures based on distributed ledger technology.

Most crypto-assets fall outside the scope of Union financial services legislation and create challenges in terms of, among other things, investor protection, market integrity, energy consumption and financial stability. Such crypto-assets therefore require a dedicated regulatory framework at Union level.

In order to allow for the development of crypto-assets that qualify as financial instruments and for the development of distributed ledger technology, while preserving a high level of investor protection, market integrity, financial stability and transparency, and avoiding regulatory arbitrage and loopholes, it would be useful to create a pilot regime for market infrastructures based on distributed ledger technology to test such DLT market infrastructures (the ‘pilot regime’). The pilot regime should allow for certain DLT market infrastructures to be temporarily exempted from some of the specific requirements of Union financial services legislation that could otherwise prevent operators from developing solutions for the trading and settlement of transactions in crypto-assets that qualify as financial instruments, without weakening any existing requirements or safeguards applied to traditional market infrastructures. DLT market infrastructures and their operators should have in place adequate safeguards related to the use of distributed ledger technology to ensure the effective protection of investors, including clearly defined chains of liability to clients for any losses due to operational failures.

On 30 March 2022, the Council of the EU published a draft Regulation of the European Parliament and of the Council on a pilot regime for market infrastructures based on distributed ledger technology, and amending Regulations (EU) No 600/2014 and (EU)No 909/2014 and Directive 2014/65/EU.

Most crypto-assets fall outside the scope of Union financial services legislation and create challenges in terms of, among other things, investor protection, market integrity, energyconsumption and financial stability. Such crypto-assets therefore require a dedicated regulatory framework at Union level.

In order to allow for the development of crypto-assets that qualify as financial instruments and for the development of distributed ledger technology, while preserving a high level of investor protection, market integrity, financial stability and transparency, and avoiding regulatory arbitrage and loopholes, it would be useful to create a pilot regime for market infrastructures based on distributed ledger technology to test such DLT market infrastructures (the ‘pilot regime’). 

The pilot regime should allow for certain DLT market infrastructures to be temporarily exempted from some of the specific requirements of Union financial services legislation that could otherwise prevent operators from developing solutions for the trading and settlement of transactions in crypto-assets that qualify as financial instruments, without weakening any existing requirements or safeguards applied to traditional market infrastructures. DLT market infrastructures and their operators should have in place adequate safeguards related to the use of distributed ledger technology to ensure the effective protection of investors, including clearly defined chains of liability to clients for any losses due to operational failures.

On 15 March 2022, the European Parliament announced new rules to boost benefits and curb threats for cryptocurrencies in the EU.

On 14 March 2022, the Economic and Monetary Affairs Committee adopted, with 31 votes to 4 and 23 abstentions, its negotiating position on new rules on crypto-assets. They aim to boost users’ confidence and support the development of digital services and alternative payment instruments.

Key provisions agreed by MEPs for those issuing and trading crypto-assets (including  asset-referenced tokens and e-money tokens) cover transparency, disclosure, authorisation and supervision of transactions. Consumers would be better informed about risks, costs and charges. In addition, the legal framework supports market integrity and financial stability by regulating public offers of crypto-assets. Finally, the agreed text includes measures against market manipulation and to prevent money laundering, terrorist financing and other criminal activities.

Environmental threats

To reduce the high carbon footprint of crypto-currencies, particularly of the mechanisms used to validate transactions, MEPs ask the Commission to present MEPs with a legislative proposal to include in the EU taxonomy (a classification system) for sustainable activities any crypto-asset mining activities that contribute substantially to climate change, by 1 January 2025.

MEPs stress that other industries (e.g. the video games and entertainment industry, data centres) also consume energy resources that are not climate-friendly. They call for the Commission to work on legislation addressing these issues across different sectors.

Supervision

MEPs want the European Securities and Markets Authority (ESMA) to supervise the issuance of asset-referenced tokens, whereas the European Banking Authority (EBA) will be in charge of supervising electronic money tokens.

After the parliament vote, the MiCA draft is now shifting to a "trilogue", a formal round of negotiations between the European Commission, Council and Parliament.

On 14 March 2022, the European fund and Asset Management Association (EFAMA) announced that FinDatEx published EET v1.0 and EMT v4.0.

The European ESG Template (EET) is meant to facilitate the necessary exchange of data between product manufacturer and distributor for the purpose of fulfilling ESG-related regulatory requirements contained in the SFDR, relevant provisions of the Taxonomy Regulation, and the relevant delegated acts complementing MiFID II and IDD. The EET V1 is based on the regulatory situation on the day of publication and will be reviewed regularly depending on the evolving regulation, and at least confirmed annually. With regard to the MiFID target market, the EET interacts with the EMT V4. FinDatEx recommends the delivery by product manufacturers as of 1 June 2022.

On 24 March 2022, the European Supervisory Authorities (ESAs) published an updated joint supervisory statement on the application of the Sustainable Finance Disclosure Regulation.

The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) have updated their joint supervisory statement on the application of the Sustainable Finance Disclosure Regulation (SFDR). This includes a new timeline, expectations about the explicit quantification of the product disclosures under Article 5 and 6 of the Taxonomy Regulation, and the use of estimates.

The supervisory statement aims to promote an effective and consistent application and national supervision of the SFDR, thus creating a level playing field and protecting investors.

The ESAs recommend that national competent authorities and market participants use the current interim period from 10 March 2021 until 1 January 2023 to prepare for the application of the forthcoming Commission Delegated Regulation containing the Regulatory Technical Standards (RTS) while also applying the relevant measures of SFDR and the Taxonomy Regulation according to the relevant application dates outlined in the supervisory statement.

The ESAs clarify that, under Article 5 and 6 of the Taxonomy Regulation, the supervisory expectation for disclosures during the interim period is that financial market participants should provide an explicit quantification, through the numerical disclosure of the percentage, of the extent to which investments underlying the financial product are taxonomy-aligned.

In addition, while estimates should not be used, where information is not readily available from investee companies’ public disclosures, financial market participants may rely on equivalent information on taxonomy-alignment obtained directly from investee companies or from third party providers.

This updated statement replaces the initial joint supervisory statement, which was released in February 2021.

The European Commission sent on 8 July 2021 a letter to the European Parliament and Council announcing that it intends to bundle all 13 RTS under SFDR into a single delegated act and to defer the application of 1 January 2022 by six months to 1 July 2022. The Commission sent another letter on 25 November 2021 announcing that the application date of the RTS would be 1 January 2023.

The European Commission is required to endorse the ESAs draft RTS within 3 months of the publication. Subject to the non-objection by the European Parliament and Council of the European Union – within 3 months following the Commission’s endorsement – the RTS will be adopted by the Commission by means of a delegated regulation.

On 7 April 2021, the Order of 28 March 2021 concerning the certification of conformity of services for entering into remote business relations was published in  (France's Official Journal).

The Order established that for the application of Articles R. 561-5-1 and R. 561-5-2 of the Monetary and Financial Code, the department with national competence created by Article 1 of the Decree of 7 July 2009 shall publish on its website:

• A technical reference system specifying the requirements applicable to remote business relationship entry services;
• The requirements applicable to the bodies responsible for the evaluation and certification of these services.

The certification of the conformity of the remote business relationship entry services to the technical reference system is carried out by certification bodies authorized under the conditions provided for in Articles 3 and 4 of the order by the above-mentioned national competence service.

In the absence of such bodies, the certification is carried out directly by this service with national competence.

Version française

Le 7 avril 2021, l'arrêté du 28 mars 2021 relatif à la certification de conformité des services d'entrée en relation commerciale à distance a été publié au (Journal officiel de la France).

L'arrêté a établi que pour l'application des articles R. 561-5-1 et R. 561-5-2 du code monétaire et financier, le service à compétence nationale créé par l'article 1er du décret du 7 juillet 2009 publie sur son site internet :

• Un référentiel technique précisant les exigences applicables aux services de saisie de la relation commerciale à distance ;
• Les exigences applicables aux organismes chargés de l'évaluation et de la certification de ces services.

La certification de la conformité des services de mise en relation d'affaires à distance au référentiel technique est effectuée par des organismes de certification habilités dans les conditions prévues aux articles 3 et 4 de l'arrêté par le service national de compétence susvisé.

En l'absence de tels organismes, la certification est effectuée directement par ce service à compétence nationale. 

On 22 March 2022, the Law n°2022-400 aimed at strengthening the role of the Defender of Rights in terms of alert reporting and law n°2022-401 aimed at improving the protection of whistleblowers was published in Legifrance (France's Official Journal). 

Law n°2022-400 is complementary to the law n°2022-401. It transposes the requirements of the European Directive on the protection of persons who report breaches of Union law.

The Defender of Rights has been competent to direct whistleblowers to the competent authorities to receive their report and ensure their rights and freedoms.

The law clarifies and extends this mission. In addition to his guidance role, the Defender of Rights will now have to  inform and advise whistleblowers and "defend" their rights and freedoms . This protection is extended to other persons protected in the context of an alert procedure, in particular third parties and "facilitators" .

These new missions will be carried out by a new assistant to the Defender of Rights "in charge of supporting whistleblowers".

Whistleblowers can send him a report directly. If the report falls within its competence, it will collect and process it and provide feedback to its author. Otherwise, the whistleblower will be referred to the competent authority.

Any person may ask the Defender of Rights to certify their status as a whistleblower, either under the general protection of whistleblowers, or under a sectoral protection regime.

This certification will take the form of a notice . A response must be provided to the interested party within six months. This formal recognition will facilitate the whistleblower's access to the various protection measures against reprisals and closure procedures as well as privileged access to the financial support mechanisms provided for by the ordinary law of March 21, 2022 aimed at improving the protection of whistleblowers.

The Defender of Rights must present a public report every two years on the overall functioning of the protection of whistleblowers .

Law n°2022-401 modifies the general system for the protection of whistleblowers established by the so-called "Sapin 2" law. 

The text specifies the definition of the whistleblower, the field of information considered as an alert and completes the list of applicable secrets.

A whistleblower will be recognized as a natural person who reports or discloses, without direct financial compensation and in good faith, information relating to a crime, an offence, a threat or harm to the general interest, a violation or an attempt concealment of a violation of international or European Union law, law or regulation.

Until now, the whistleblower had to act "disinterestedly". This ambiguous notion is replaced by an absence of financial compensation . This is to make the admissibility of the alert more flexible, particularly in cases where the whistleblower is in conflict with his employer, without however allowing his remuneration.

According to the "Sapin 2" law, the whistleblower also had to have "personal" knowledge of the facts he was reporting. This condition is removed in the professional context. In this context, a whistleblower will thus be able to report facts that have been reported to him. 

The facts denounced may relate to "information" on a crime, an offense or violations of the law but also on "attempts to conceal" these violations. The violation of the rule will no longer have to be "gross and manifest".

At the initiative of parliamentarians, the guarantees offered by the Sapin 2 law have been extended to whistleblowers who fall under a specific reporting system. The whistleblower will benefit from the most favorable measures of each device. These safeguards will not, however, apply to the specific information reporting system.

To facilitate alerts, the law reinforces the guarantees of confidentiality that surround a report and completes the list of prohibited reprisals (intimidation, damage to reputation, particularly on social networks, abusive referral to care, registration on a blacklist, etc.).

The irresponsibility of whistleblowers because of their reporting is extended . The whistleblower cannot be held liable either civilly for the damage that his report in good faith will have caused, nor criminally for having intercepted and taken away confidential documents related to his alert, containing information to which he will have had lawful access. For example, an employee who is shown a report proving that a factory discharged mercury into a river, would have the right to steal it to prove the facts of which he had lawful knowledge.

The law also intends to limit the sometimes considerable financial cost of the procedures that whistleblowers must initiate . At the start of the trial, the judge may award a provision for legal costs to the whistleblower who contests a reprisal measure or a "gag" procedure against him (such as a complaint for defamation intended to intimidate and silence the whistleblower alert). The deputies have provided that the judge can also allocate a provision to the whistleblower whose financial situation has seriously deteriorated . MEPs further allowed the judge to make these provisions final at any time, i.e. even if the pitcher.

Finally, whistleblowers will be able to benefit from psychological and financial support measures by external authorities, whether they have been contacted directly or via the Defender of Rights.

Version française

Le 22 mars 2022, la loi n°2022-400 visant à renforcer le rôle du Défenseur des droits en matière de signalement des alertes et la loi n°2022-401 visant à améliorer la protection des lanceurs d'alerte ont été publiées dans Legifrance (Journal officiel de la France). 

La loi n°2022-400 est complémentaire à la loi n°2022-401. Elle transpose les exigences de la directive européenne relative à la protection des personnes qui signalent des violations du droit de l'Union.

Le Défenseur des droits était compétent pour orienter les lanceurs d'alerte vers les autorités compétentes pour recevoir leur signalement et garantir leurs droits et libertés.

La loi clarifie et étend cette mission. En plus de son rôle d'orientation, le Défenseur des droits devra désormais informer et conseiller les lanceurs d'alerte et "défendre" leurs droits et libertés. Cette protection est étendue aux autres personnes protégées dans le cadre d'une procédure d'alerte, notamment les tiers et les "facilitateurs" .

Ces nouvelles missions seront assurées par un nouvel assistant du Défenseur des droits "chargé d'accompagner les lanceurs d'alerte".

Les lanceurs d'alerte pourront lui adresser directement un signalement. Si le signalement relève de sa compétence, il le collectera, le traitera et fera un retour à son auteur. Dans le cas contraire, le lanceur d'alerte sera renvoyé vers l'autorité compétente.

Toute personne peut demander au Défenseur des droits de certifier sa qualité de lanceur d'alerte, soit au titre de la protection générale des lanceurs d'alerte, soit au titre d'un régime de protection sectoriel.

Cette attestation prendra la forme d'un avis. Une réponse devra être fournie à l'intéressé dans un délai de six mois. Cette reconnaissance formelle facilitera l'accès du lanceur d'alerte aux différentes mesures de protection contre les représailles et aux procédures de clôture ainsi qu'un accès privilégié aux dispositifs de soutien financier prévus par la loi ordinaire du 21 mars 2022 visant à améliorer la protection des lanceurs d'alerte.

Le Défenseur des droits doit présenter tous les deux ans un rapport public sur le fonctionnement global de la protection des lanceurs d'alerte.

La loi n°2022-401 modifie le dispositif général de protection des lanceurs d'alerte mis en place par la loi dite "Sapin 2". 

Le texte précise la définition du lanceur d'alerte, le champ des informations considérées comme une alerte et complète la liste des secrets applicables.

Le lanceur d'alerte sera reconnu comme une personne physique qui signale ou divulgue, sans contrepartie financière directe et de bonne foi, une information relative à un crime, un délit, une menace ou un préjudice pour l'intérêt général, une violation ou une tentative de dissimulation d'une violation du droit international ou de l'Union européenne, d'une loi ou d'un règlement.

Jusqu'à présent, le lanceur d'alerte devait agir de manière "désintéressée". Cette notion ambiguë est remplacée par une absence de compensation financière. Il s'agit d'assouplir la recevabilité de l'alerte, notamment dans les cas où le lanceur d'alerte est en conflit avec son employeur, sans toutefois permettre sa rémunération.

Selon la loi "Sapin 2", le lanceur d'alerte devait également avoir une connaissance "personnelle" des faits qu'il dénonçait. Cette condition est supprimée dans le contexte professionnel. Dans ce contexte, un lanceur d'alerte pourra donc dénoncer des faits qui lui ont été rapportés. 

Les faits dénoncés pourront porter sur des "informations" sur un crime, un délit ou des violations de la loi mais aussi sur des "tentatives de dissimulation" de ces violations. La violation de la règle ne devra plus être "flagrante et manifeste".

A l'initiative des parlementaires, les garanties offertes par la loi Sapin 2 ont été étendues aux lanceurs d'alerte qui relèvent d'un système de signalement spécifique. Le lanceur d'alerte bénéficiera des mesures les plus favorables de chaque dispositif. Ces garanties ne s'appliqueront toutefois pas au dispositif spécifique de signalement des informations.

Pour faciliter les signalements, la loi renforce les garanties de confidentialité qui entourent un signalement et complète la liste des représailles interdites (intimidation, atteinte à la réputation, notamment sur les réseaux sociaux, orientation abusive vers des soins, inscription sur une liste noire...).

L'irresponsabilité des lanceurs d'alerte du fait de leur signalement est étendue. Le lanceur d'alerte ne peut être tenu responsable ni civilement du préjudice que son signalement de bonne foi aura causé, ni pénalement pour avoir intercepté et emporté des documents confidentiels liés à son alerte, contenant des informations auxquelles il aura eu légalement accès. Par exemple, un salarié à qui l'on montre un rapport prouvant qu'une usine a déversé du mercure dans une rivière, aurait le droit de le voler pour prouver les faits dont il avait légalement connaissance.

La loi entend également limiter le coût financier parfois considérable des procédures que les lanceurs d'alerte doivent engager. Au début du procès, le juge pourra accorder une provision pour frais de justice au lanceur d'alerte qui conteste une mesure de représailles ou une procédure "bâillon" à son encontre (comme une plainte pour diffamation destinée à intimider et faire taire le lanceur d'alerte). Les députés ont prévu que le juge puisse également allouer une provision au lanceur d'alerte dont la situation financière s'est gravement dégradée. Les députés ont en outre permis au juge de rendre ces provisions définitives à tout moment, c'est-à-dire même si le lanceur d'alerte.

Enfin, les lanceurs d'alerte pourront bénéficier de mesures d'accompagnement psychologique et financier par des autorités extérieures, qu'ils aient été contactés directement ou par l'intermédiaire du Défenseur des droits.

On 25 March 2021, the Agence nationale de la sécurité des systèmes d'information (ANSSI) updated the FAQ on the eIDAS regulation.

The update concerned the added clarification on remote user identity verificiation. 

Version française

Le 25 mars 2021, l'Agence nationale de la sécurité des systèmes d'information (ANSSI) a mis à jour la FAQ sur le règlement eIDAS.

Cette mise à jour concernait l'ajout de précisions sur la vérification de l'identité de l'utilisateur à distance.

On 21 March 2022, the Autorité des marchés financiers (AMF) updated its doctrine on control system and programme of operations of asset management companies.

The AMF updates its doctrine to clarify its expectations following a SPOT summary on the outsourcing of internal control within portfolio management companies (PMCs). The AMF's policy on authorisation of asset management companies has also been updated to take account of the introduction of the ROSA extranet and the overhaul of the asset management company programme of operations.

With regard specifically to the amendments to position-recommendation DOC-2014-06, all of the new positions and recommendations are applicable immediately, with the exception of the positions relating to the organization of the permanent control system in the event of outsourcing, which will be applicable as of March 31, 2023. Instruction DOC-2012-01 relating to the organization of the activity of management of collective investments and the investment service of portfolio management on behalf of third parties with respect to risk management is adjusted to take into account some of the above changes.

The Guide for the preparation of the program of operations of portfolio management companies and self-managed collective investments is updated:

• To take into account the introduction of the ROSA extranet, a new communication tool between asset management companies and the AMF, and the revised format of the approval grid and programme of operations for asset management companies;
• To clarify the AMF's expectations in terms of the organization of the asset management company when it manages collective investments distributed under life insurance contracts;

to remove the requirement to disclose shareholders with a stake of between 5% and 10% in an asset management company when it is approved, a requirement already removed from Instruction DOC-2008-03.

This document will also be updated in the near future to take into account the new capital requirements for asset management companies, particularly in light of Regulation (EU) 2019/2033 of the European Parliament and of the Council of November 27, 2019 on prudential requirements for investment firms.

In addition, a new form is proposed in instruction DOC-2008-03, enabling an asset management company whose approval schedule contains a restriction to professional clients or to hedging transactions for certain futures and related integrated derivatives to request that the AMF lift the restriction.

Version française

Le 21 mars 2022, l'Autorité des marchés financiers (AMF) a mis à jour sa doctrine sur le dispositif de contrôle et le programme d'activité des sociétés de gestion de portefeuille.

L'AMF met à jour sa doctrine afin de préciser ses attentes suite à une synthèse SPOT sur l'externalisation du contrôle interne au sein des sociétés de gestion de portefeuille (SGP). La doctrine de l'AMF en matière d'agrément des SGP est également mise à jour pour tenir compte de la mise en place de l'extranet ROSA et de la refonte du programme d'activité des SGP.

S'agissant plus particulièrement des modifications apportées à la position-recommandation DOC-2014-06, l'ensemble des nouvelles positions et recommandations sont d'application immédiate, à l'exception des positions relatives à l'organisation du dispositif de contrôle permanent en cas d'externalisation, qui seront applicables à compter du 31 mars 2023. L'instruction DOC-2012-01 relative à l'organisation de l'activité de gestion de placements collectifs et du service d'investissement de gestion de portefeuille pour compte de tiers en matière de gestion des risques est ajustée pour tenir compte de certains des changements ci-dessus.

Le Guide pour l'élaboration du programme d'activité des sociétés de gestion de portefeuille et des placements collectifs autogérés est mis à jour :

• pour tenir compte de la mise en place de l'extranet ROSA, nouvel outil de communication entre les sociétés de gestion et l'AMF, et du format révisé de la grille d'agrément et du programme d'activité des sociétés de gestion de portefeuille ;
• de clarifier les attentes de l'AMF en matière d'organisation de la société de gestion de portefeuille lorsqu'elle gère des placements collectifs distribués dans le cadre de contrats d'assurance-vie ;
• de supprimer l'obligation d'information des actionnaires détenant une participation comprise entre 5% et 10% dans une société de gestion de portefeuille lors de son agrément, obligation déjà supprimée dans l'instruction DOC-2008-03.

Ce document sera également mis à jour prochainement pour prendre en compte les nouvelles exigences en matière de fonds propres des sociétés de gestion de portefeuille, notamment au regard du règlement (UE) 2019/2033 du Parlement européen et du Conseil du 27 novembre 2019 concernant les exigences prudentielles applicables aux entreprises d'investissement.

Par ailleurs, un nouveau formulaire est proposé dans l'instruction DOC-2008-03, permettant à une société de gestion de portefeuille dont le schéma d'agrément comporte une restriction à la clientèle professionnelle ou aux opérations de couverture de certains contrats à terme et dérivés intégrés connexes, de demander à l'AMF de lever cette restriction.

On 11 March 2022, Belgium publishes in its Official Journal adapted version of the filing forms "Complete model of annual accounts", "Abridged model of annual accounts" and "Micromodel of annual accounts" for companies with legal personality, ASBL, AISBL and foundations, drawn up by the National Bank of Belgium.

The National Bank of Belgium announces the existence of an adapted version of the filing forms "Complete model of annual accounts", "Abridged model of annual accounts" and "Micromodel of annual accounts" drawn up for legal persons required to draw up their annual accounts in accordance with the schemes set out in the annexes to Titles 2 and 3 of the Royal Decree of 29 April 2019 implementing the Companies and Associations Code.

The changes made in this updated version only concern the cover page with the identification data.

These adapted versions are available free of charge on the website of the Central Balance Sheet Of the National Bank of Belgium (www.centraledesbilans.be).

On 28 March 2022, Belgium published in its official journal a Royal Decree on the composition, organisation, operation, control and independence of the financial information processing unit (CTIF).

Although the Royal Decree of 11 June 1993 is still legally applicable, it should be replaced by a new Royal Decree, essentially for two reasons and without the need to make any substantive changes.

On the one hand, the readability of the Royal Decree of 11 June 1993 is no longer ensured as the references to the articles are made in relation to the law of 11 January 1993, which was abolished on 16 October 2017.

On the other hand, an update is necessary in order to integrate all the new categories of taxable entities referred to in Article 5, § 1 of the law of 18 September 2017 and, as a result, to ensure full concordance between the law of 18 September 2017 and the content of the draft Royal Decree, issued in implementation of Article 77, § 3, 1°, of the law of 18 September 2017. 

This alignment of the Royal Decree with the scope ratione personae of the law of 18 September 2017 ensures the continuity of CTIF's financing and budgetary balance, as all entities liable to contribute to the costs of its operation will thus be well covered.

CTIF is operationally independent and autonomous, which means that it has the authority and capacity to freely exercise its functions, including the authority to autonomously decide to analyse, request and transmit the specific information provided to it under the law of 18 September 2017.

It is under the administrative control of the Minister of Justice and the Minister of Finance. The joint control of the Ministers of Justice and Finance is limited to the approval of CTIF's internal regulations, the determination of the maximum amount of its budget and the control of its use, the appointment of the members of CTIF by the King with the countersignature of the competent Ministers and the right to receive an annual activity report.

The Ministers have no control over the decision-making power of CTIF. They cannot give it instructions, injunctions or orders, in particular as to whether or not to forward a file to the public prosecutor.

On 31 March 2022, published a Draft law containing various provisions on intermediation in the financial and insurance sector.

The bill under consideration contains various amendments to the legislation relating to intermediation in the financial and insurance sector. 

Firstly, it aims at a greater harmonisation of these different legislations, without fundamentally changing the rules. It thus aims to harmonise the terminology used in these different legislations in order to target the so-called "fit & proper" condition, i.e. the condition of expertise and professional good repute required for financial intermediaries and their managers. These changes are purely terminological and do not alter the content of this requirement. 

The draft under review then aims to harmonise the rules for calculating the time limits for FSMA's decisions on authorisation or registration. Thus, a single time limit is prescribed, starting from the date of receipt of the application for authorisation or registration and the complete file. The aim is to give the FSMA more flexibility in the event that an applicant is late in completing its authorisation file. 

Lastly, the bill under review aims to harmonise the various provisions relating to the FSMA's powers, in particular its power to obtain information and documents from supervised intermediaries that are useful for its supervisory duties. Thus, for example, the obligation to respond to FSMA's questions and inspections is made a condition of registration that must be complied with at all times by each intermediary or lender.

In the more specific area of the distribution of insurance and reinsurance products, the bill under consideration aims to strengthen the responsibility of insurance or reinsurance agents and brokers who work with sub-agents. 

On 23 March 2022, Belgium published in its Official Journal the Royal Decree approving the regulation of the Financial Services and Markets Authority (FSMA) of 15 February 2022 amending the regulation of the FSMA of 16 May 2017 concerning the statistical information to be transmitted by certain public collective investment undertakings with variable number of units.

Article 1 of the Regulation of the Financial Services and Markets Authority of 16 May 2017 concerning the statistical information to be transmitted by certain public collective investment undertakings with variable numbers of units is supplemented by a 12°, worded as follows: "12° "Regulation 2017/1131": Regulation (EU) 2017/1131 of the European Parliament and of the Council of 14 June 2017 on MMFs."

Art. 2. Article 3( 2) of the regulations is supplemented by a 4°, worded as follows: "4° the data mentioned in the diagram set out in Annex 3 to this regulation."

Art. 3. Article 5 of the same Regulation shall be supplemented by a paragraph, worded as follows: "The statistical statements referred to in Article 3, § 2, 4 °, relate to the working day. This period shall be the reference period of the statistical statements."

Art. 4. In article 6 of the same regulation, the existing text of which will form paragraph 1, the following amendments are made: 1 ° to paragraph 1, paragraph 1 is replaced by the following: "The statistical statements referred to in article 3, § 2, 1 °, 2 ° and 3 °, are established on a quarterly frequency and correspond to each quarter of the calendar year." 2 ° the article is supplemented by a paragraph 2, worded as follows: " § 2. The statistical statements referred to in Article 3, § 2, 4 °, shall be communicated on a monthly basis."

Art. 5. Article 7 of the Same Regulation shall be supplemented by a paragraph, worded as follows: "The statistical statements referred to in Article 3, § 2, 4 °, shall be adopted every working day."

Art. 6. Article 8 of the Regulation is supplemented by a paragraph 3, which reads as follows: " § 3. The first statistical statements referred to in Article 3, § 2, 4 °, which must be transmitted relate to the following period: 1 ° for a new collective investment undertaking or a new compartment, the working day on which the first net asset value is calculated at the end of the initial subscription period; 2 ° for a collective investment undertaking under foreign law, or a compartment of such an undertaking, already marketed in its country of origin at the time of its registration in Belgium, on the working day of the date of registration."

Art. 7. Article 9 of the Rules of Procedure is supplemented by a paragraph 3, which reads as follows: " § 3. The latest statistical statements referred to in Article 3, § 2, 4 °, which must be transmitted are those adopted on the date of cancellation of the collective investment undertaking or sub-fund."

Art. 8. Article 10 of the same Regulation is supplemented by a paragraph, worded as follows: "For the collective investment undertaking or compartment absorbed, the latest statistical statements referred to in Article 3, § 2, 4 ° which must be transmitted are those relating to the date of cancellation of the undertaking or compartment concerned."

Art. 9. In Article 11 of the Regulations, the words "in Annex 2" are replaced by the words "in Annexes 2 and 3".

Art. 10. In Article 13 of the same Regulation, the words "Article 3, § 2, 3 °" are supplemented by the words "and 4 °".

Art. 11. Article 14 of that regulation is supplemented by a paragraph, worded as follows: "The new collective investment undertaking or sub-fund shall communicate its first statistical statements as referred to in Article 3( 2) (4), as the case may be, at the end of the month in which the date of cancellation of the collective investment undertaking or compartment being absorbed is situated, or at the end of the month following the date of cancellation of the collective investment undertaking or compartment being absorbed. The first statistical statements shall be drawn up for the working day following the date of cancellation of the collective investment undertaking or compartment being absorbed."

Art. 12. Article 16 of the same regulation is supplemented by a paragraph, worded as follows: "The statistical statements referred to in Article 3, § 2, 4 °, are communicated to the FSMA within 3 working days following the last working day of the period referred to in Article 6, § 2, to which they relate."

Art. 13. In Article 20 of the same Regulation, the words "Article 3, § 2, 3" are supplemented by the words "and 4 °".

Art. 14. In Article 21 of the same Regulation, the words "Article 3, § 2, 3 °" are supplemented by the words "and 4 °".

Art. 15. In Chapter 3 of the Regulations, a Section 3 is inserted containing Article 33/1.

Art. 16. The list of annexes to the Regulations is supplemented by a paragraph, which reads as follows: "3. Schema of statistical statements (III)"

Art. 17. In the Regulations, an Annex 3 is inserted.

Art. 18. This Regulation shall enter into force on the first day of the second month following the entry into force of the Order approving it.

On 15 March 2022, the Chambre des représentants de Belgique amended the Proposal for a law amending the Companies and Associations Code, aimed at integrating a carbon footprint into companies' annual reports.

In order to raise the awareness of companies and their and their stakeholders with regard to their carbon emissions, the proposed law aims to integrate a carbon footprint in their annual reports.

The amendments concern the proposed paragraph 5.

Paragraph 5 applies to companies that exceed the criterion of an average number of 500 employees over the financial year on the balance sheet date of the last closed financial year. For the calculation of the annual average number of employees, Article 1:24, § 5, applies. The annual report shall include a greenhouse gas emissions balance sheet, i.e. an estimate of the greenhouse gas emissions caused by the company's activities in Belgium during the financial year covered by the annual report or, in the absence of available data, during the previous financial year. Greenhouse gas emissions are expressed in tonnes of carbon dioxide equivalent.

The greenhouse gas balance sheet shall distinguish between: (1) direct emissions caused by sources that are necessary for the company's activities; (2) indirect emissions related to the consumption of electricity, heat or steam that are necessary to carry out these activities.

In order to establish the greenhouse gas balance, the company shall use approved European and international benchmarks. It shall state in the statement the benchmark or benchmarks on which it has based itself.

The King shall draw up a list of European and international benchmarks and due diligence procedures on which companies may rely.

The companies concerned shall meet in accordance with the principle of social consultation, according to each sector of activity, in order to put in place a joint action plan to reduce carbon emissions. This sectoral plan must enable each sector to reduce its carbon emissions by 55% by 2030 compared to 2005 and to achieve carbon neutrality by 2050. The plan starts on 1 January 2023 and covers a period of six years. It is to be renewed to take account of actual emission reductions and targets for 2030 and 2050.

With regard to the sectoral plan presented above, companies must put in place their own carbon reduction action plan in accordance with the principle of social consultation. This action plan starts on 1 January 2024 and covers a period of three years. It must be renewed to take account of actual emission reductions and the targets set by the sectoral plan.

The action plan should contain at least the following information

• all the main actions that the company plans to implement over the next three years
• the overall amount of greenhouse gas emission reductions expected.

In addition, companies must publish a report evaluating the action plan within one year of the end of their financial year. It must contain at least the following information

• the results of emission reductions according to the targets set by the action plan
• in case the targets are not met, an objective assessment of the reasons for such failures
• where the targets are not met, the actions included in the n+1 action plan to remedy the shortcomings identified.

The sectoral plans referred to in paragraph 1, the action plans referred to in paragraph 2 and the action plan evaluation reports referred to in paragraph 3 must be published in the same section as the carbon footprint and in the annual report following the drafting of these documents.

On 18 March 2022, the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) updated their FAQ on the MiFID2 rules of conduct set out in sections 63 et seq. of the German Securities Trading Act (Wertpapierhandelsgesetz).

The following question was added:

J. Processing of customer orders

1. What are the time limits for a securities account transfer?

Custody account orders must generally be executed without delay. This follows from § 69 (1) no. 1 WpHG. A securities account order shall be executed within three weeks at the latest. If it is not possible to execute a securities account transfer within three weeks, the instructed institution shall send the customer an interim message immediately after the expiry of the three weeks, at the latest within five working days, in which it also explains the reason for the delay. This follows from Art. 67 (1) letter c) DelVO 2017/565. 

On 1 March 2022, the Securities and Futures Commission (SFC) published joint circular on the concurrent SFC-HKMA thematic review of the distribution of non-exchange traded investment products.

The SFC and the Hong Kong Monetary Authority (HKMA) will commence a concurrent thematic review of the distribution of non-exchange traded investment products by intermediaries. The regulators released the findings from the first joint product survey in October 2021, and they have been closely coordinating their supervision to address areas of common concern. 

The concurrent thematic review will cover selected intermediaries’ policies, procedures, systems and controls, as well as management oversight of the distribution of popular products such as equity-linked structured products (including equity accumulators and decumulators) and corporate bonds, as noted from the joint survey. The review’s objectives are to assess intermediaries’ compliance with the suitability requirement under the Code of Conduct, including their practices for performing product due diligence, conducting suitability assessments and providing information to clients.

The SFC and the HKMA will share the findings of the concurrent thematic review with the industry and consider the need for further guidance where appropriate.

On 31 March 2022, the Securities and Futures Commission (SFC) published a circular regarding Handling of client complaints.

LCs should ensure compliance with the requirements under paragraph 12.3 of the Code of Conduct and part V (5) of the Internal Control Guidelines when handling client complaints. The SFC sets out expected regulatory standards for compliance with these requirements, which are divided into the following areas:

A.  Management oversight and complaint handling policies and procedures

B.  Disclosure of complaint handling procedures

C.  Identification and escalation of complaints

D.  Investigating complaints

E.  Communicating outcomes to clients

F.  Record keeping

The SFC also provides suggested techniques and procedures as well as good practices noted from the SFC’s review. LCs are encouraged to adopt the techniques and procedures which are commensurate with their business models and the size of their operations.

SFC highlights the following to the senior management of LCs:

• The senior management of an LC should designate a Manager-In-Charge (MIC) to oversee complaint handling, and the MIC is expected to be able to demonstrate to the SFC that any complaint has been handled in a timely and appropriate manner upon enquiries from the SFC;
• LCs with a large retail client base should put in place dedicated resources to handle client complaints, such as forming a complaint committee to review and monitor the complaint handling process; and
• LCs’ staff should escalate internally to senior management any serious and high-impact cases for prompt handling and investigation, and report to the SFC without delay suspected breaches of the Code of Conduct and other regulatory requirements.

On 24 March 2022, the Securities and Futures Commission (SFC) published a circular on managing the risks of business email compromise.

The SFC recently received reports from licensed corporations (LCs) about business email compromise, a type of cyber fraud whereby fraudsters posing as known business contacts dupe unwary staff into sending them money or sensitive information. These incidents resulted in the leakage of client information which undermined client interests and, in some cases, significant financial losses which the LCs had to bear.

The SFC expects LCs to have internal control procedures and financial and operational capabilities which can be reasonably expected to protect their operations and clients from financial losses arising from theft, fraud and other dishonest acts, professional misconduct or omissions. LCs are reminded to vigilantly monitor and effectively manage BEC risks, especially at times when remote working arrangements are commonplace.

On 4 March 2022, the Securities and Futures Commission (SFC) published a circular on the submission of financial statements, other documents and auditor’s report under section 156(1) of the Securities and Futures Ordinance.

The circular serves to inform licensed corporations (LCs) and associated entities (AEs) of intermediaries of a temporary arrangement for the submission of the financial statements, other documents and auditor’s report (collectively referred to as “audited accounts”) to the Securities and Futures Commission (SFC) under section 156(1) of the Securities and Futures Ordinance.

The SFC understands that the directors of certain LCs or AEs, particularly those located outside Hong Kong, may encounter difficulties in physically signing the audited accounts due to the coronavirus situation, and hence the LCs or AEs may not be able to submit the original copy of the audited accounts with wet-ink signatures by the submission deadline, which is four months after the end of the financial year. To provide flexibility to the industry, LCs and AEs are allowed to submit a scanned copy of their audited accounts by the submission deadline and submit the original copy as soon as reasonably practicable after the submission deadline.  

LCs and AEs may also apply for an extension of the submission deadline if a delay in preparing the audited accounts is anticipated. These applications will be considered by the SFC pragmatically.

On 4 March 2022, the Revenue (Reduction of Business Registration Fees and Branch Registration Fees) Order 2022 was published in the Government Gazette of Hong Kong.

This Order reduces the fee payable under the Business Registration Ordinance (Cap. 310) (Cap. 310) for a business registration certificate or branch registration certificate that is endorsed with a date of commencement that falls within the period of 12 months beginning on 1 April 2022 (concession period). 

The fee payable under section 5A(1)(a) of Cap. 310 in relation to an incorporation submission within the meaning of Cap. 310 is also reduced if the incorporation submission is made within the concession period.

On 4 March 2022, the Securities and Futures Commission (SFC) published its circular regarding measures to deal with disruptions caused by financial distress and insufficient responsible officers.

This circular sets out the SFC’s regulatory approach and expected standards in the following areas to mitigate the risks and impact of an abrupt discontinuation of business:

(a) information about all controllers and the shareholding structure of an LC;

(b) maintenance of a sufficient number of responsible officers (ROs);

(c) maintenance of adequate financial resources;

(d) financial and operational dependency on another person;

(e) plans for the scenario of an orderly closure of business in any regulated activity (exit plans); and

(f) responsibility of senior management.

On 29 March 2022, the Securities and Futures Commission (SFC) published a circular on Updated Technical Specifications for OTC Derivatives Trade Reporting.

The SFC informed that the Hong Kong Monetary Authority issued a notice (Notice) about updated technical specifications for over-the-counter (OTC) derivatives trade reporting under the Hong Kong Trade Repository (HKTR). 

Licensed Corporations that may be subject to mandatory reporting obligation are advised to refer to the Notice.

On 25 March 2022, the Securities and Futures Commission (SFC) published a circular on waiver of annual licensing fees.

The SFC will waive the annual licensing fees of all intermediaries and licensed individuals incurred during the period from 1 April 2022 to 31 March 2023.

The SFC will not issue the usual demands for payment for annual licensing fees which would ordinarily become payable during this one-year period. Payments of all other fees, including for licence applications and transfers, will not be affected.

On 28 March 2022, Securities and Futures Commission (SFC) published a circular on mandatory online submission of licensing applications, notifications and regulatory filings.

This circular serves as a reminder that online submission of corporate license applications will become mandatory from 1 April 2022.

The SFC launched a fully digitalised licensing platform via WINGS on 3 January 2022. The SFC has previously announced that it would continue to accept paper corporate application forms until 31 March 2022 to allow time for the industry to become familiar with the new system.  

To date, almost all intermediaries have activated their WINGS accounts. The SFC has processed more than 34,000 licence applications, notifications and regulatory filings submitted through WINGS since the launch of the fully digitalised functions. With the three-month transition expiring, any paper licensing forms submitted to the SFC on or after 1 April 2022 will be returned.

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On 8 March 2022, the S.I. No. 100 of 2022 - European Union (Restrictive Measures Concerning Ukraine) (No.6) Regulations 2022 was published in the Irish Statute Book.

The Regulations implement Council Regulation (EU) No. 208/2014 of 5 March 2014 as amended, Council Regulation (EU) No. 269/2014 of 17 March 2014 as amended, Council Regulation (EU) No. 692/2014 of 23 June 2014 as amended, Council Regulation (EU) No. 833/2014 of 31 July 2014 as amended and Council Regulation (EU) 2022/263 of 23 February 2022, regarding situations in Ukraine.

On 4 March 2022, the S.I. No. 93 of 2022 - Financial Services and Pensions Ombudsman Act 2017 [Financial Services and Pensions Ombudsman Council] Financial Services Industry Levy Regulations 2022 was published in the Irish Statute Book.

These Regulations provide for the collection and recovery of the levy and provide for certain obligations in respect of self-assessment and record keeping by financial service providers. These Regulations also provide for the calculation of the required levy contribution payable by each category of financial service provider for the year ended 31 December 2022.

On 4 March 2022, the Central Bank of Ireland (CBI) updated on national provisions governing marketing requirements for AIFs.

The update is a list of information and documentation to be submitted to the Central Bank where an AIF situated in another jurisdiction proposes to market its units in Ireland to retail investors:

1. Information

• the full name of the AIF.
• the full name and address of the management company and/or AIFM and/or investment company.
• the full name and address of the depositary.
• the jurisdiction in which the AIF is authorised and the name and address of the supervisory authority. 
• details of the arrangements for the marketing of units in Ireland.
• the full name and address of the establishment (hereafter “facilities agent”) where facilities will be maintained to perform the tasks referred to in Regulation 44A(1) of the AIFM Regulations and where: the constitutional document, the prospectus and half-yearly reports can be examined, free of charge, and copies obtained if required; and complaints can be made for forwarding to the head office of the management company/AIFM/investment company.

2. Documentation

• a completed Retail Investor AIF application form together with a letter explaining any material differences between the requirements applicable to the AIF and those applicable to a Retail Investor AIF.
• a statement or certificate from the supervisory authority of the AIF confirming that it is authorised.
• a certified copy of the constitutional document.
• the prospectus and any amendments thereto.
• the latest annual report and any subsequent half-yearly report.
• a copy of any other document materially affecting the rights of unitholders in the AIF.
• confirmation from the facilities agent that it has agreed to act for the AIF.

On 7 March 2022, the Central Bank of Ireland (CBI) published a statement concerning the consultation from the BaFin (the Federal Financial Supervisory Authority of Germany) on its proposal to prohibit the marketing, distribution and sale of futures with additional payments obligations to retail clients in Germany.

An additional payment obligation for the purposes of this arises if the capital held by the investor (capital paid to the intermediary firm in connection with futures trading) is insufficient to compensate for the losses incurred, even after any forced closing out or the liquidation of other positions, and the investor must make good these losses from their other assets.

It is important to note that any voluntary increase in the variation margin by the investor to avoid forced closing out of open positions therefore will not constitute an additional payment obligation for the purposes of this intervention.

The proposed measure will be adopted under Article 42 of Regulation (EU) No. 600/2014 (MiFIR).  If firms may be impacted by this proposal, they should notify their usual supervisor at the CBI as soon as possible.

On 25 March 2022, the S.I. No. 135 of 2022 - Central Bank Act 1942 (Section 32E) Prospectus and Related Documents Fee Regulations 2022 was published in the Irish Statute Book.

These Regulations, made by the Central Bank Commission, revoke and replace the Central Bank Act 1942 (Section 32E) Prospectus and Related Documents Approval Fee Regulations 2015 ( S.I. No. 106 of 2015 ). They set out the obligation on applicants for prospectus approval to pay a fee in advance of receipt of that approval. They also set out the obligation to a pay a fee in respect of certain documents that are filed with the Bank.

On 7 March 2022, the Central Bank of Ireland published an Industry Communication related to Fund Service Providers effectively managing risks due to the Russian war in Ukraine.

The contents of the communication should be taken into account by Fund Service Providers when responding to unfolding events, particularly with respect to the financial sanctions, valuation of funds, liquidity management and decisions regarding dealing arrangements.  The Central Bank will have regard to the contents of this letter as part of future supervisory engagements or any other action, including enforcement action, the Central Bank might take.

On 7 March 2022, Banca d'Italia issued a press release on the restrictive measures adopted by the EU in response to the Russian military aggression in Ukraine.

The supervised entities are therefore required to respect them, putting in place the controls and the devices necessary, constantly monitoring the updating of the measures in question.

In the current context, supervised entities are recommended to exercise utmost care with with reference to the risk of cyber attacks, to intensify monitoring and defense activities in relation to possible malware activity and to take all risk mitigation measures that you make it necessary.

Furthermore, supervised entities are invited to carefully consider the business continuity plans (business continuity plan) and to ensure the correct functioning and prompt restoration of backups.

Finally, the supervised entities are invited to pay constant attention to the updates provided by the Computer Security Incident Response Team - Italy.

On 24 March 2022, the CONSOB amended the issuer regulation regarding the performance fees of UCITS and certain types of AIFs.

The CONSOB published Resolution no. 22274 bearingamendments to the Issuers' Regulations (Regulations) for adaptation to the ESMA guidelines on UCITS performance fees of some types of AIFs.

In particular, the Resolution makes the following changes to the Regulation:

• Paragraph 1-ter is added to art. 15-bis (KIID), providing that, in the event that performance fees are also envisaged in periods of negative performance, the KIID must contain an explicit warning about this circumstance. The KIID must also contain all information, clearly reported, relating to the existence, to calculation and application of the commission. If the commission is calculated on the basis of performance against an index, the KIID must contain the name of the reference index;
• Subparagraph 21.2.1 (Management fees) of the Annex is replaced 1B, scheme 1, section C, paragraph 21, providing for the need for (i) indicate in the table the amount of the management fees only and exemplifying the calculation methods (no longer also those of incentive); (ii) indicate any incentive fees and theirs potential impact on investment return by providing information on the performance fee model (or performance) and the calculation methodology (including parameters of payment reference and date); (iii) include concrete examples of calculation of the performance (or performance) fee; (iv) in case of incentive (or performance) commissions calculated on the basis of performance of a benchmark, indicate the name of the parameter reference and past performance with respect to it (v) in the case in which a fund managed in relation to a benchmark calculate performance (or performance) fees using a model based on a different but consistent benchmark, explain the choice of the benchmark.

The amendments to the Regulations will enter into force on the tenth day following the date of its publication in the Official Gazette. There offer documentation must be updated at the earliest opportunity and, in any case, no later than 30 April 2022.

On 17 March 2022, the Commission de Surveillance du secteur financier (CSSF) published FAQ regarding International Financial Sanctions.

As overview, Professionals need to comply with the Law of 19 December 2020 on the implementation of restrictive measures in financial matters, which entered into force on 27 December 2020 (“the Law 2020”), and with the CSSF Regulation 12-02 on the fight against money laundering and terrorist financing as modified (“CSSF Regulation 12-02”). Also, professionals need to consider the UN and European regulatory framework regarding financial restrictive measures, directly applicable in Luxembourg. 

Version française

Le 17 mars 2022, la Commission de Surveillance du secteur financier (CSSF) a publié une FAQ concernant les sanctions financières internationales.

En guise d'aperçu, les professionnels doivent se conformer à la loi du 19 décembre 2020 relative à la mise en œuvre de mesures restrictives en matière financière, entrée en vigueur le 27 décembre 2020 ("la Loi 2020"), et au Règlement CSSF 12-02 relatif à la lutte contre le blanchiment de capitaux et le financement du terrorisme tel que modifié ("Règlement CSSF 12-02"). De même, les professionnels doivent tenir compte du cadre réglementaire onusien et européen en matière de mesures restrictives financières, directement applicable au Luxembourg. 

On 8 March 2022, Draft Law no 7972 amends (1) the Code of criminal procedure, (2) the amended law of 7 March 1980 on the organisation of the judiciary, (3) the amended law of 8 August 2000 on international judicial assistance in criminal matters, (4) the amended law of 12 November 2004 on the fight against money laundering and terrorist financing and (5) the amended law of 10 July 2020 on the central fiduciary register.

The bill is intended to ensure consistency of the legal texts governing international mutual assistance in criminal matters and the fight against money laundering and the financing of terrorism (AML/CTF), as well as their compliance with AML/CTF international standards and proliferation of the Financial Action Task Force (FATF), and to rectify a material error in the law of17 December 2021 transposing Directive (EU) 2018/1673, through targeted amendments of various legal provisions.

The main changes proposed by the bill are the following:

• abolishing the possibility of refusing a request for mutual assistance which relates exclusively to tax, customs or exchange offences under Luxembourg law;
• allowing the Financial Intelligence Unit to receive alerts from the associative sector and providing persons who carry out paid or voluntary activities in non-profit organisations with an additional communication channel to fulfil the obligation to inform the judicial or administrative authorities of certain crimes of which they become aware;
• clarifying that the obligation to identify the client and the ultimate beneficial owner is applicable regardless of the professionals’ risk assessment, which excludes any risk-based discretion for professionals not to identify the client or the ultimate beneficial owner;
• clarifying that professionals are not obliged to duplicate copies of documents, information and data that are necessary to comply with customer due diligence obligations when they enter into or maintain several business relations, or carry out several occasional transactions, involving the same natural person or legal entity, of which a copy of the necessary documents, information and data has already been collected and kept, provided that the professionals are able to make the documents, data and information in question rapidly available to the authorities;
• allowing supervisory authorities to request their foreign counterpart authorities to carry out an investigation or inspection in the territory of that counterpart authority; and
• clarification of the deadline for trustees and fiduciaries to update the information on beneficial owners that they obtain and maintain, which is set at one month.

Version française

Le 8 mars 2022, le projet de loi n° 7972 modifie (1) le code de procédure pénale, (2) la loi modifiée du 7 mars 1980 portant organisation de la justice, (3) la loi modifiée du 8 août 2000 relative à la justice internationale l'assistance en matière pénale, (4) la loi modifiée du 12 novembre 2004 relative à la lutte contre le blanchiment et le financement du terrorisme et (5) la loi modifiée du 10 juillet 2020 relative au fichier fiduciaire central.

Le projet de loi vise à assurer la cohérence des textes juridiques régissant l'entraide internationale en matière pénale et la lutte contre le blanchiment de capitaux et le financement du terrorisme (LBC/FT), ainsi que leur conformité avec les normes internationales de LBC/FT et la prolifération des Groupe d'action financière (GAFI), et de rectifier une erreur matérielle dans la loi du 17 décembre 2021 transposant la directive (UE) 2018/1673, par des modifications ciblées de diverses dispositions légales.

Les principaux changements proposés par le projet de loi sont les suivants :

• suppression de la possibilité de refuser une demande d'entraide qui porte exclusivement sur des infractions fiscales, douanières ou de change relevant du droit luxembourgeois ;
• permettant à la Cellule de Renseignement Financier de recevoir des alertes du secteur associatif et offrant aux personnes exerçant des activités rémunérées ou bénévoles au sein d'associations à but non lucratif un canal de communication supplémentaire pour remplir l'obligation d'informer les autorités judiciaires ou administratives de certaines infractions dont elles prendre conscience;
• préciser que l'obligation d'identifier le client et le bénéficiaire effectif ultime est applicable quelle que soit l'évaluation des risques des professionnels, ce qui exclut tout pouvoir discrétionnaire fondé sur le risque pour les professionnels de ne pas identifier le client ou le bénéficiaire effectif ultime ;
• préciser que les professionnels ne sont pas tenus de dupliquer les copies des documents, informations et données nécessaires au respect des obligations de vigilance à l'égard de la clientèle lorsqu'ils nouent ou entretiennent plusieurs relations d'affaires, ou réalisent plusieurs opérations occasionnelles, impliquant la même personne physique ou morale entité, dont une copie des documents, informations et données nécessaires a déjà été collectée et conservée, à condition que les professionnels soient en mesure de mettre rapidement les documents, données et informations en question à la disposition des autorités ;
• permettre aux autorités de contrôle de demander à leurs autorités homologues étrangères d'effectuer une enquête ou une inspection sur le territoire de cette autorité homologue ; et
• clarification du délai de mise à jour des informations sur les bénéficiaires effectifs qu'ils obtiennent et conservent pour les trustees et fiduciaires, fixé à un mois.

On 10 March 2022, the Commission de Surveillance du secteur financier (CSSF) published User Guide allowing CSDs to submit the settlement fails reporting as per Article 7 of the Central Securities Depository Regulation.

In January 2022 the CSSF published Circular CSSF 22/792 informing the market that, in its capacity as competent authority, the CSSF applies the Guidelines on Settlement Fails Reporting published on 8 December 2021 (ESMA70-156-4717) under Article 7 of Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 (CSDR).

In accordance with Article 7 of CSDR and the guidelines mentioned in the circular, the CSSF has implemented the relevant technical solution allowing CSDs to comply with this obligation. The details describing how CSDs can submit the reporting are described in the CSSF User Guide available below.

CSDs are requested to implement the connectivity requirements mentioned in this User Guide in order to submit the reporting and to ensure that their procedures are updated to ensure timely reporting of the requested information.

Version française

Le 10 mars 2022, la Commission de Surveillance du secteur financier (CSSF) a publié un Guide d'utilisation permettant aux CSD de soumettre la déclaration des défauts de règlement conformément à l'article 7 du Règlement sur les dépositaires centraux de titres.

En janvier 2022, la CSSF a publié la circulaire CSSF 22/792 informant le marché qu'en sa qualité d'autorité compétente, la CSSF applique les lignes directrices sur le signalement des défauts de règlement publiées le 8 décembre 2021 (ESMA70-156-4717) en vertu de l'article 7 du règlement ( UE) n° 909/2014 du Parlement européen et du Conseil du 23 juillet 2014 concernant l'amélioration du règlement de titres dans l'Union européenne et les dépositaires centraux de titres et modifiant les directives 98/26/CE et 2014/65/UE et le règlement (UE) n° 236/2012 (CSDR).

Conformément à l'article 7 du CSDR et aux orientations mentionnées dans la circulaire, la CSSF a mis en place la solution technique pertinente permettant aux CSD de se conformer à cette obligation. Les détails décrivant comment les CSD peuvent soumettre le reporting sont décrits dans le Guide de l'utilisateur de la CSSF disponible ci-dessous.

Les CSD sont priés de mettre en œuvre les exigences de connectivité mentionnées dans le présent Guide de l'utilisateur afin de soumettre les rapports et de s'assurer que leurs procédures sont mises à jour pour assurer la communication en temps opportun des informations demandées.

On 31 March 2022, the Commission de Surveillance du secteur financier (CSSF) published Circular CSSF 22/804 which updates Circular CSSF 21/769 on governance and security requirements for Supervised Entities to perform tasks or activities through telework. 

Circular CSSF 21/769 on teleworking was issued on 9 April 2021, with an entry into force scheduled for 30 September 2021, safe exceptional circumstances such as the COVID-19 pandemic. In view of the government’s recent announcements dropping the majority of the health restrictions taken in the context of COVID-19, the circular will apply as from 1 July 2022.

Circular CSSF 21/769 on teleworking is a response to market demand, and based on reflections that started even before the pandemic. There is a keen interest coming from both the employers and the employees of the financial sector in new ways of working and one of the CSSF’s missions is to enable innovation by providing a framework.

During the drawing-up of this text, the CSSF considered the needs of very diverse players (from big banks to small institutions), the specific requirements of the financial business in terms of data security and confidentiality, and the atypical situation of Luxembourg, where a large part of the workforce of the financial sector is non-resident.

The circular defines the governance and security requirements for supervised entities that should be complied with when implementing and using work processes based on telework solutions.

The circular will be reviewed at the latest 12 months after its entry into force, i.e. by 30 June 2023, in order to address potential abuses or any other shortcomings or deficiencies.

To find out more about the challenges addressed by this circular, do not hesitate to listen or listen again to the podcast on this subject broadcast by the CSSF in May 2021.

Version française

Le 31 mars 2022, la Commission de Surveillance du secteur financier (CSSF) a publié la circulaire CSSF 22/804 qui met à jour la circulaire CSSF 21/769 relative aux exigences de gouvernance et de sécurité pour les entités surveillées qui effectuent des tâches ou des activités par le biais du télétravail. 

La circulaire CSSF 21/769 sur le télétravail a été publiée le 9 avril 2021, avec une entrée en vigueur prévue pour le 30 septembre 2021, sauf circonstances exceptionnelles telles que la pandémie de COVID-19. Compte tenu des récentes annonces du gouvernement abandonnant la majorité des restrictions sanitaires prises dans le cadre de la COVID-19, la circulaire sera applicable à partir du 1er juillet 2022.

La circulaire CSSF 21/769 sur le télétravail est une réponse à la demande du marché, et s'appuie sur des réflexions qui ont débuté avant même la pandémie. Il existe un vif intérêt, tant de la part des employeurs que des employés du secteur financier, pour de nouvelles façons de travailler et l'une des missions de la CSSF est de permettre l'innovation en fournissant un cadre.

Lors de l'élaboration de ce texte, la CSSF a pris en considération les besoins d'acteurs très divers (des grandes banques aux petites institutions), les exigences spécifiques du secteur financier en matière de sécurité et de confidentialité des données, ainsi que la situation atypique du Luxembourg, où une grande partie de la main-d'œuvre du secteur financier est non-résidente.

La circulaire définit les exigences de gouvernance et de sécurité des entités surveillées qui doivent être respectées lors de la mise en œuvre et de l'utilisation de processus de travail basés sur des solutions de télétravail.

La circulaire sera réexaminée au plus tard 12 mois après son entrée en vigueur, soit le 30 juin 2023, afin de remédier aux abus potentiels ou à toute autre lacune ou insuffisance.

Pour en savoir plus sur les défis abordés par cette circulaire, n'hésitez pas à écouter ou réécouter le podcast sur ce sujet diffusé par la CSSF en mai 2021.

BACKGROUND

On 1 April 2022, the Law of 30 March 2022 on inactive accounts, inactive safes and dormant insurance contracts was published in the Legilux (Journal Officiel du Grand-Duché de Luxembourg).

The Law creates the legal framework to strengthen the protection of clients by imposing professional obligations on banks as well as contributing to the fight against money laundering and the financing of terrorism.

WHAT'S NEW?

The Inactive Accounts Law applies to any entity that

• has individual accounts open on its books in the name of its clients (such as current accounts, savings accounts, securities accounts or fiduciary deposits as well as holding accounts that have been closed while the entity remains in possession of the assets deposited with it)
• holds safe-deposit boxes in the name of its clients or
• is an insurance provider making available to its clients contracts within the scope of annex II to the Luxembourg law of 7 December 2015 on the insurance sector (life insurance contracts).

The Law sets out three key measures:

• provisions to prevent the inactivity of accounts, safe-deposit boxes as well as of insurance contracts and measures to re-establish contact with clients or their beneficiaries;
• the obligation to transfer assets with the "Caisse de Consignation" after an extended inactivity period of the accounts, safe-deposit boxes or in the absence of any claims related to insurance benefits arising from insurance contracts; and
• provisions in relation to the restitution of the assets held with the "Caisse de Consignation".

The Law indeed enhances the protection of account and safe-deposit boxes holders as well as of beneficiaries of insurance policies by making it easier for them to recover the access to their assets.

Under the Law, the starting point for inactivity of accounts is the day from which the account holder has not carried out any transactions in respect of the account and when there has been no communication whatsoever, of any kind, on behalf of the account holder with the bank. Starting from then, if after a total of 6 (six) years no activity has been recorded, the account will be considered inactive. 

To actually prevent the inactivity of accounts, credit institutions must i.a. put in place:

• internal organisational processes to identify and monitor the accounts that are likely to become inactive
• establish specific rules to inform and search for the holders of these accounts or, where applicable, their beneficiaries (“ayants-droit”) 
• update the information regarding the business relationships.

Depending on the amount held on the account, credit institutions must take specific measures at fixed intervals in order to re-establish contact with a relevant account holder.

Similar rules apply to credit institutions when handling inactive safe-deposit boxes and to insurance undertakings regarding the handling of unclaimed insurance contracts.

Where the credit institutions and insurance undertakings have not been able to reach a relevant account/ safe-deposit box holder or insurance contract beneficiary, they will be required to request the transfer of the relevant assets with the "Caisse de Consignation". This will result in the closing of the accounts, of the safe-deposit boxes and the termination of the contractual relationship between the insurance undertaking and the policyholder.  The credit institutions and insurance undertakings will nonetheless be required to keep all information and documents relating to these accounts, safe-deposit boxes and insurance contracts in order to allow for their restitution, if requested. To this end, the "Caisse de Consignation" keeps an electronic register of the relevant assets. Any person justifying the existence of a right in relation to the consigned assets may file a restitution request with the "Caisse de Consignation". If no restitution has been requested after 30 years have elapsed, the assets will be transferred to the State of Luxembourg.

WHAT'S NEXT?

The entities falling within the scope of the Law are required to maintain appropriate internal procedures in order to identify accounts susceptible of becoming inactive and to implement rules for the search for information of beneficiaries of such accounts whilst insurance undertakings are under an obligation to monitor the payability of insurance benefits.

The entities holding accounts in the name of their clients are required to inform the CSSF of:

• the total number of holders of inactive accounts and of the holders of safe-deposit boxes and
• the overall balance of the inactive accounts as of 31 December of each year. 

Such information is to be transmitted to the CSSF by electronic means at the latest on 28 February of the following year. 

Similarly, the insurance undertakings are under an obligation to deliver to the Commissariat aux Assurances information on

• the number of insurance contracts considered abandoned, and
• their global value.

Version française

BACKGROUND

Le 1er avril 2022, la loi du 30 mars 2022 sur les comptes inactifs, les coffres-forts inactifs et les contrats d'assurance inactifs a été publiée au Legilux (Journal Officiel du Grand-Duché de Luxembourg).

La loi crée le cadre juridique pour renforcer la protection des clients en imposant des obligations professionnelles aux banques ainsi qu'en contribuant à la lutte contre le blanchiment de capitaux et le financement du terrorisme.

WHAT'S NEW?

La loi sur les comptes inactifs s'applique à toute entité qui

• détient des comptes individuels ouverts dans ses livres au nom de ses clients (tels que des comptes courants, des comptes d'épargne, des comptes de titres ou des dépôts fiduciaires ainsi que des comptes de dépôt qui ont été clôturés alors que l'entité reste en possession des actifs qui y ont été déposés)
• détient des coffres-forts au nom de ses clients ou
• est un prestataire d'assurance mettant à la disposition de ses clients des contrats relevant de l'annexe II de la loi luxembourgeoise du 7 décembre 2015 relative au secteur des assurances (contrats d'assurance-vie).

La loi prévoit trois mesures essentielles :

• des dispositions visant à prévenir l'inactivité des comptes, des coffres-forts ainsi que des contrats d'assurance et des mesures visant à rétablir le contact avec les clients ou leurs bénéficiaires ;
• l'obligation de transférer les actifs à la "Caisse de Consignation" après une période d'inactivité prolongée des comptes, des coffres-forts ou en l'absence de toute réclamation liée aux prestations d'assurance découlant des contrats d'assurance ; et
• des dispositions relatives à la restitution des actifs détenus auprès de la "Caisse de Consignation".

La loi renforce en effet la protection des titulaires de comptes et de coffres-forts ainsi que des bénéficiaires de polices d'assurance en leur permettant de récupérer plus facilement l'accès à leurs actifs.

En vertu de la loi, le point de départ de l'inactivité des comptes est le jour à partir duquel le titulaire du compte n'a effectué aucune opération sur le compte et lorsqu'il n'y a eu aucune communication, de quelque nature que ce soit, de la part du titulaire du compte avec la banque. A partir de ce moment, si après un total de 6 (six) ans aucune activité n'a été enregistrée, le compte sera considéré comme inactif. 

Pour prévenir effectivement l'inactivité des comptes, les établissements de crédit doivent notamment mettre en place

• des processus organisationnels internes pour identifier et surveiller les comptes susceptibles de devenir inactifs.
• établir des règles spécifiques pour informer et rechercher les titulaires de ces comptes ou, le cas échéant, leurs ayants-droit ("ayants-droit") 
• mettre à jour les informations relatives aux relations d'affaires.

En fonction du montant détenu sur le compte, les établissements de crédit doivent prendre des mesures spécifiques à intervalles fixes afin de rétablir le contact avec un titulaire de compte concerné.

Des règles similaires s'appliquent aux établissements de crédit pour le traitement des coffres-forts inactifs et aux entreprises d'assurance pour le traitement des contrats d'assurance non réclamés.

Lorsque les établissements de crédit et les entreprises d'assurance n'ont pas été en mesure de joindre un titulaire de compte/de coffre-fort ou un bénéficiaire de contrat d'assurance, ils devront demander le transfert des actifs concernés à la "Caisse de Consignation". Ceci entraînera la clôture des comptes, des coffres et la fin de la relation contractuelle entre l'entreprise d'assurance et le preneur d'assurance.  Les établissements de crédit et les entreprises d'assurance seront néanmoins tenus de conserver toutes les informations et documents relatifs à ces comptes, coffres et contrats d'assurance afin de permettre leur restitution, si elle est demandée. A cet effet, la Caisse de Consignation tient un registre électronique des avoirs concernés. Toute personne justifiant de l'existence d'un droit sur les biens consignés peut déposer une demande de restitution auprès de la Caisse de Consignation. Si aucune restitution n'a été demandée à l'issue d'un délai de 30 ans, les biens seront transférés à l'État luxembourgeois.

WHAT'S NEXT?

Les entités relevant du champ d'application de la loi sont tenues de maintenir des procédures internes appropriées afin d'identifier les comptes susceptibles de devenir inactifs et de mettre en place des règles pour la recherche d'informations sur les bénéficiaires de ces comptes tandis que les entreprises d'assurance ont l'obligation de contrôler l'exigibilité des prestations d'assurance.

Les entités qui détiennent des comptes au nom de leurs clients sont tenues d'informer la CSSF de :

• le nombre total de titulaires de comptes inactifs et de titulaires de coffres-forts et
• le solde global des comptes inactifs au 31 décembre de chaque année. 

Ces informations sont à transmettre à la CSSF par voie électronique au plus tard le 28 février de l'année suivante. 

De même, les entreprises d'assurances ont l'obligation de livrer au Commissariat aux Assurances des informations sur

• le nombre de contrats d'assurance considérés comme abandonnés, et
• leur valeur globale.

1. On 1 March 2022, the Commission de Surveillance du Secteur Financier (CSSF) published a Circular letter to all persons and entities supervised by the CSSF concerning the restrictive measures of the EU in response to the current situation in Ukraine.

The CSSF wishes to draw the attention of the professionals of the financial sector under its supervision to the restrictive measures decided by the European Union in this respect, in particular those adopted and entered into force on February 23, 2022, February 25, 2022 and February 28, 2022, as well as those which will be taken by the European Union in the future.

The CSSF reminds that these regulations are mandatory in all their elements and directly applicable in national law and that professionals have the obligation to comply with them while putting in place the necessary controls and measures. Professionals must also assess whether, in addition to the restrictive measures directly applicable in Luxembourg, other financial restrictive measures of third countries must be implemented by the professional according to the international nature of its activity.

The CSSF also underlines that following the entry into force of the law of 19 December 2020 on the implementation of restrictive measures in financial matters, it expects the persons and entities subject to its supervision to apply these restrictive measures without delay, in the forms prescribed by Article 6(1) of this law and to inform without delay the Ministry of Finance and at the same time the CSSF in accordance with the provisions of Article 33(2) of the CSSF Regulation No. 12-02 of 14 December 2012 on the fight against money laundering and terrorist financing

Finally, the CSSF calls on supervised entities to be extremely vigilant with regard to the risks of cyber attacks, in particular by denial of service.

The supervised entities are also requested to pay particular attention to their continuity plan and to ensure the proper functioning and recovery of their backups. The CSSF particularly emphasizes the importance of having backups of the most essential systems and data offline, i.e. not physically or logically connected to the production environment.

2. On 8 March 2022, Commission de Surveillance du secteur financier (CSSF) published a communicaation on the Reactivation of the IFM notifications on fund issues and large redemptions via eDesk.

On 25 February 2022, the CSSF implemented a specific monitoring of the largest investment fund managers (“IFM”) in view of the specific circumstances and risks to which these companies are exposed to as a result of the prevailing market conditions relating to the current situation in Ukraine. Since then, these IFMs have had to notify the CSSF of significant developments and issues as well as on related decisions and measures taken by IFMs.

The information collected serves the CSSF to perform its daily supervision and as a basis to support discussions with other authorities and with market players to identify issues at an early stage and to assist with the resolution of these.

All IFM concerned by the notification on fund/IFM issues and/or large redemptions (hereafter “IFM Notification”) have been contacted by the CSSF.

An IFM Notification has to be transmitted to the CSSF via eDesk only if the following events occur:

• significant events/issues affecting the functioning of the IFM or the investment funds managed by the IFM (e.g. valuation, liquidity), including also the impact of restrictive measures in response to the current situation in Ukraine if applicable;
• larger redemptions at the level of Luxembourg regulated investment funds (UCITS, Part II UCI, SIF) managed by the IFM (i.e. daily net redemptions exceeding 5% of the NAV, net redemptions over a calendar week exceeding 15% of the NAV and/or application of gates/ deferred redemptions).

For the IFM that have been contacted by the CSSF, some specific additional information has also been requested if the IFM manages individual (sub-)fund(s) with a combined direct or indirect exposure (including exposure gained through derivatives) exceeding 10% of their Total Net Assets (TNA) to Russian and/or Ukrainian issuers.

Further details on the IFM Notification, the scope of application and additional explanations assisting IFM infilling in the notification are outlined in the dedicated section of the CSSF eDesk Portal homepage.

The IFM Notification remains in place until further notice by the CSSF.

In this context, the CSSF informed the industry that the reporting “IFM Notification – Early Warning”, which is only relevant for a limited number of UCITS that have, in the past, been contacted directly by the CSSF, is suspended until further notice.

In order to support IFM and to ensure a secured exchange platform, the response notification shall be submitted by the IFM via the CSSF eDesk Portal. For that purpose, the IFM must have an eDesk account with a LuxTrust authentication.

For any technical questions linked to the eDesk platform, please contact: edesk@cssf.lu.

In light of the prevailing market conditions, the CSSF also reminded the industry about the following clarifications given by means of CSSF “Frequently Asked Questions” as also referred to in the CSSF FAQ COVID-19:

• the CSSF FAQ on the swing pricing mechanism (applied similarly to dilution levy) applicable to regulated investment funds in Luxembourg (UCITS, UCI part II, SIF), including amongst others clarifications on the increase of the applied swing factor beyond the maximum swing factor laid down in the fund prospectus;
• the CSSF FAQ concerning the Luxembourg Law of 17 December 2010 relating to undertakings for collective investment which in its section 11 “Treatment of breaches of the UCITS global exposure limit” provides clarifications in relation to VaR limit breaches in front of heightened volatility in financial markets.

3. On 8 March 2022, the Commission de Surveillance du secteur financier (CSSF) published FAQ adressed to the press on the Ukrainian crisis.

In this FAQ, the CSFF focuses on questions relating to international financial sanctions (the role of the CSSF in this regard, the actions taken by the CSSF to inform the supervised entitites about the sanctions and the measures the CSSF will take to ensure that supervised entities apply the sanctions, the consequences of non-compliance with the international financial sanctions, the use of cryptocurriencies to divert these sanctions),  the impact on the Luxembourg financial centre (the level of exposure of the Luxembourg investmeent fund industry and banks to Russia and Ukraine, the risk on financial stability if a Russina bank established in Luxembourg become is liquidated), and on cyber-risk.

4. On 31 March 2022, the Commission de Surveillance du secteur financier (CSSF) published FAQs on the application of Liquidity Management Tools by investment funds in the context of Ukrainian crisis.

In the context of the impact of the Ukraine crisis on financial markets, investment fund managers (IFMs) are currently facing the challenge of how to deal with Russian and Belarussian assets in their managed investment funds that have become illiquid/ non tradeable as a consequence of this crisis as well as due to the restrictive measures taken by the EU and other countries in this context.

The CSSF received questions from market participants regarding temporary as well as more structural measures for the situation, including the usage of Liquidity Management Tools (LMTs) by investment funds as well as the valuation of the affected assets.

The CSSF hereby provided additional information and clarification, taking into account also the previously published FAQs on swing pricing (FAQ_Swing_Pricing) and COVID-19 (FAQ_Covid_19).

The CSSF emphasized that the approach, including the choice of the respective LMTs as well as the valuation to be applied to affected assets, is the responsibility of the governing body of the respective investment fund (hereafter referred to as “governing body of the fund”).

The CSSF expects that the governing body of the fund, while always safeguarding the interests of all investors (existing and future) in such funds, considers the following elements (non-exhaustive list) when deciding about the application of temporary or more structural measures for the respective investment fund(s):

- Specific fund documentation (prospectus, articles of incorporation, management

regulation)

- Investment policy and strategy (country-focused or wider investment focus)

- Overall size of exposure to illiquid/ non-tradeable assets in absolute size and in relation to total net assets.

- Restrictions due to the current sanction’s regime.

As most of the affected investment funds are UCITS and governed by the local Law of 17 December 2010, the FAQs mainly relate to these fund structures, while they might also be applicable to alternative investment funds.

The FAQs aims at providing further guidance to the governing body of the fund in their own assessment of each investment fund’s individual situation, to provide further insights on the different options available to the governing body of the fund and to decide on the best way forward.

Please note that the segregation options referred to under point 3. of the present FAQs are only applicable for illiquid assets resulting from the Ukraine crisis and should under no circumstance be interpreted such as creating a precedent by the CSSF for any other or future situations.

Version française

1. Le 1er mars 2022, la Commission de Surveillance du Secteur Financier (CSSF) a publié une lettre circulaire à toutes les personnes et entités surveillées par la CSSF concernant les mesures restrictives de l'UE en réponse à la situation actuelle en Ukraine.

La CSSF souhaite attirer l'attention des professionnels du secteur financier sous sa surveillance sur les mesures restrictives décidées par l'Union européenne à cet égard, notamment celles adoptées et entrées en vigueur le 23 février 2022, le 25 février 2022 et le 28, 2022, ainsi que celles qui seront prises par l'Union européenne à l'avenir.

La CSSF rappelle que cette réglementation est obligatoire dans tous ses éléments et directement applicable en droit national et que les professionnels ont l'obligation de s'y conformer tout en mettant en place les contrôles et mesures nécessaires. Les professionnels doivent également apprécier si, en plus des mesures restrictives directement applicables au Luxembourg, d'autres mesures restrictives financières de pays tiers doivent être mises en œuvre par le professionnel en fonction du caractère international de son activité.

La CSSF souligne également que suite à l'entrée en vigueur de la loi du 19 décembre 2020 portant mise en œuvre de mesures restrictives en matière financière, elle attend des personnes et entités soumises à sa surveillance qu'elles appliquent sans délai ces mesures restrictives, dans les formes prescrites par l'article 6(1) de la présente loi et d'informer sans délai le ministère chargé des finances et en même temps la CSSF conformément aux dispositions de l'article 33(2) du règlement CSSF n° 12-02 du 14 décembre 2012 relatif à la lutte contre le blanchiment d'argent et le financement du terrorisme

Enfin, la CSSF appelle les entités surveillées à la plus grande vigilance vis-à-vis des risques de cyberattaques, notamment par déni de service.

Les entités surveillées sont également invitées à porter une attention particulière à leur plan de continuité et à s'assurer du bon fonctionnement et de la récupération de leurs sauvegardes. La CSSF insiste particulièrement sur l'importance d'avoir des sauvegardes des systèmes et des données les plus essentielles hors ligne, c'est-à-dire non connectées physiquement ou logiquement à l'environnement de production.

2. Le 8 mars 2022, la Commission de Surveillance du secteur financier (CSSF) a publié une communication sur la Réactivation des notifications IFM sur les émissions de fonds et les rachats importants via eDesk.

Le 25 février 2022, la CSSF a mis en place une surveillance spécifique des plus grands gestionnaires de fonds d'investissement (« GFI ») au regard des circonstances et risques spécifiques auxquels ces sociétés sont exposées en raison des conditions de marché prévalant liées à la situation actuelle en Ukraine. Depuis lors, ces GFI doivent notifier à la CSSF les développements et problèmes significatifs ainsi que les décisions et mesures connexes prises par les GFI.

Les informations recueillies servent à la CSSF pour effectuer sa surveillance quotidienne et comme base pour soutenir les discussions avec les autres autorités et avec les acteurs du marché pour identifier les problèmes à un stade précoce et aider à la résolution de ceux-ci.

Tous les GFI concernés par la notification d'émissions de fonds/GFI et/ou de rachats importants (ci-après « Notification GFI ») ont été contactés par la CSSF.

Une Notification IFM doit être transmise à la CSSF via eDesk uniquement si les événements suivants se produisent :

• événements/problèmes significatifs affectant le fonctionnement du GFI ou des fonds d'investissement gérés par le GFI (par exemple, valorisation, liquidité), y compris également l'impact des mesures restrictives en réponse à la situation actuelle en Ukraine, le cas échéant ;
• des rachats plus importants au niveau des fonds d'investissement réglementés luxembourgeois (OPCVM, OPC Partie II, FIS) gérés par le GFI (c'est-à-dire des rachats nets quotidiens supérieurs à 5 % de la VNI, des rachats nets sur une semaine calendaire supérieurs à 15 % de la VNI et/ ou application de gates/remboursements différés).

Pour les GFI qui ont été contactés par la CSSF, des informations supplémentaires spécifiques ont également été demandées si le GFI gère des (compartiments) fonds individuels avec une exposition directe ou indirecte combinée (y compris l'exposition acquise via des dérivés) supérieure à 10% de leurs actifs nets totaux (TNA) à des émetteurs russes et/ou ukrainiens.

De plus amples détails sur la notification IFM, le champ d'application et des explications supplémentaires aidant l'IFM à remplir la notification sont présentés dans la section dédiée de la page d'accueil du portail CSSF eDesk.

La Notification IFM reste en vigueur jusqu'à nouvel ordre de la CSSF.

Dans ce contexte, la CSSF a informé l'industrie que le reporting « IFM Notification – Early Warning », qui n'est pertinent que pour un nombre limité d'OPCVM qui ont, par le passé, été contactés directement par la CSSF, est suspendu jusqu'à nouvel ordre.

Afin de soutenir le GFI et d'assurer une plate-forme d'échange sécurisée, la notification de réponse est transmise par le GFI via le Portail CSSF eDesk. Pour cela, le GFI doit disposer d'un compte eDesk avec une authentification LuxTrust.

Pour toute question technique liée à la plateforme eDesk, merci de contacter : edesk@cssf.lu.

Au vu des conditions de marché prévalant, la CSSF a également rappelé à l'industrie les précisions suivantes apportées par le biais des « Frequently Asked Questions » CSSF telles que reprises également dans la FAQ CSSF COVID-19 :

• la FAQ CSSF sur le mécanisme de swing pricing (appliqué de manière similaire à la commission de dilution) applicable aux fonds d'investissement réglementés au Luxembourg (OPCVM, OPC partie II, FIS), incluant entre autres des précisions sur l'augmentation du swing factor appliqué au-delà du swing factor maximum prévues dans le prospectus du fonds ;
• la FAQ CSSF relative à la loi luxembourgeoise du 17 décembre 2010 relative aux organismes de placement collectif qui dans sa section 11 « Traitement des dépassements de la limite d'exposition globale des OPCVM » apporte des précisions par rapport aux dépassements de limite de VaR face à une volatilité accrue des marchés financiers. 

3. Le 8 mars 2022, la Commission de Surveillance du secteur financier (CSSF) a publié une FAQ adressée à la presse sur la crise ukrainienne.

Dans cette FAQ, la CSFF se concentre sur les questions relatives aux sanctions financières internationales (le rôle de la CSSF à cet égard, les actions entreprises par la CSSF pour informer les entités surveillées des sanctions et les mesures que la CSSF prendra pour s'assurer que les entités surveillées appliquer les sanctions, les conséquences du non-respect des sanctions financières internationales, l'utilisation des crypto-monnaies pour détourner ces sanctions), l'impact sur la place financière luxembourgeoise (le niveau d'exposition de l'industrie luxembourgeoise des fonds d'investissement et des banques à la Russie et à l'Ukraine , le risque sur la stabilité financière en cas de liquidation d'une banque russe établie au Luxembourg), et sur le cyber-risque.

4. Le 31 mars 2022, la Commission de Surveillance du secteur financier (CSSF) a publié une FAQ sur l'application des outils de gestion de la liquidité par les fonds d'investissement dans le contexte de la crise ukrainienne.

Dans le contexte de l'impact de la crise ukrainienne sur les marchés financiers, les gestionnaires de fonds d'investissement (IFM) sont actuellement confrontés au défi de savoir comment traiter les actifs russes et biélorusses dans leurs fonds d'investissement gérés qui sont devenus illiquides/non négociables en raison de cette crise ainsi qu'en raison des mesures restrictives prises par l'UE et d'autres pays dans ce contexte.

La CSSF a reçu des questions d'acteurs du marché concernant des mesures temporaires et plus structurelles de la situation, y compris l'utilisation d'outils de gestion des liquidités (LMT) par les fonds d'investissement ainsi que la valorisation des actifs concernés.

Par la présente, la CSSF a fourni des informations et des clarifications supplémentaires, en tenant compte également des FAQ publiées précédemment sur le swing pricing (FAQ_Swing_Pricing) et le COVID-19 (FAQ_Covid_19).

La CSSF a souligné que l'approche, y compris le choix des LMT respectifs ainsi que la valorisation à appliquer aux actifs concernés, relève de la responsabilité de l'organe directeur du fonds d'investissement respectif (ci-après dénommé « organe directeur du fonds »). ).

La CSSF s'attend à ce que l'organe de gestion du fonds, tout en préservant toujours les intérêts de tous les investisseurs (existants et futurs) dans ces fonds, considère les éléments suivants (liste non exhaustive) lorsqu'il décide de l'application de mesures temporaires ou plus structurelles pour le ou les fonds d'investissement respectifs :

• Documentation spécifique au fonds (prospectus, statuts, gestion régulation)
• Politique et stratégie d'investissement (orientation pays ou investissement plus large)
• Taille globale de l'exposition aux actifs illiquides/non négociables en taille absolue et par rapport au total des actifs nets.
• Restrictions dues au régime de sanction actuel.

Comme la plupart des fonds d'investissement concernés sont des OPCVM et régis par la loi locale du 17 décembre 2010, les FAQ concernent principalement ces structures de fonds, bien qu'elles puissent également s'appliquer aux fonds d'investissement alternatifs.

La FAQ vise à fournir des conseils supplémentaires à l'organe directeur du fonds dans sa propre évaluation de la situation individuelle de chaque fonds d'investissement, à fournir de plus amples informations sur les différentes options disponibles à l'organe directeur du fonds et à décider de la meilleure voie à suivre.

Veuillez noter que les options de ségrégation visées au point 3. de la présente FAQ ne s'appliquent qu'aux actifs illiquides résultant de la crise ukrainienne et ne doivent en aucun cas être interprétées comme créant un précédent par la CSSF pour toute situation autre ou future.

On 15 March 2022, the Commission de Surveillance du secteur financier (CSSF) updated the FAQ on virtual assets for UCI.

The update includes the following new question:

Question 6. What is expected from Luxembourg Investment Fund Managers in terms of AML/CFT Due Diligence on Virtual Assets?

As per article 34 of RCSSF 12-02 as amended, when performing an investment, the professional (the IFM/investment fund) must compute a ML/FT risk scoring of the asset and perform an AML/CFT due diligence in line with the computed risk scoring. In this context, the professional is encouraged to take into account the Vertical Risk Assessment on Virtual Assets Service Providers published in December 2020.

Depending on the type of investment (direct or indirect), the type of virtual asset (for example cryptocurrency, utility token, etc…) and the way of acquisition (exchange platform, ITO, ICO, etc…), the level of ML/TF risk as well as the due diligence will vary. The key outcome of the due diligence on virtual assets is to understand where the virtual assets are coming from and/or where they are going to (buy/sell side) in order to mitigate the risk of the investment fund being abused by money launderers or terrorist financing.

Version française

Le 15 mars 2022, la Commission de Surveillance du secteur financier (CSSF) a mis à jour la FAQ sur les actifs virtuels pour les OPC.

La mise à jour comprend la nouvelle question suivante :

Question 6. Qu'attend-on des gestionnaires de fonds d'investissement luxembourgeois en termes de diligence raisonnable en matière de LBC/FT sur les actifs virtuels ?

Conformément à l'article 34 du RCSSF 12-02 tel que modifié, lors de la réalisation d'un investissement, le professionnel (le GFI/le fonds d'investissement) doit calculer un score de risque de LBC/FT de l'actif et effectuer une diligence raisonnable en matière de LBC/FT conformément au score de risque calculé. Dans ce contexte, le professionnel est encouragé à prendre en compte l'évaluation verticale des risques des prestataires de services d'actifs virtuels publiée en décembre 2020.

Selon le type d'investissement (direct ou indirect), le type d'actif virtuel (par exemple cryptocurrency, utility token, etc...) et le mode d'acquisition (plateforme d'échange, ITO, ICO, etc...), le niveau de risque de blanchiment et de financement du terrorisme ainsi que la diligence raisonnable varieront. Le résultat clé de la diligence raisonnable sur les actifs virtuels est de comprendre d'où viennent les actifs virtuels et/ou où ils vont (côté achat/vente) afin d'atténuer le risque que le fonds d'investissement soit utilisé de manière abusive par des blanchisseurs d'argent ou pour financer le terrorisme.

BACKGROUND

On 31 march 2022, the Commission de Surveillance du secteur financier (CSSF) announced that the reports of investment funds foreseen by Circular CSSF 21/790 are available in eDesk.

On 22 December 2021, the CSSF issued a communiqué on the publication of Circulars CSSF 21/788, 21/789 and 21/790. These circulars introduce new reports in order to improve the CSSF’s risk-based supervision, for both prudential and AML/CFT purposes, concerning investment fund managers (IFMs) and undertakings for collective investment (UCIs).

On 10 January 2022, the new module « Collective Investment Sector Reporting Tool » (CISERO) has been made available on the CSSF eDesk platform in order to prepare the reports referred to in Circulars CSSF 21/788 (AML/CFT external report) and CSSF 21/789 (IFMs) and to submit them to the CSSF.

WHAT'S NEW?

The CSSF informs that, as from 31 March 2022, the reports introduced by Circular CSSF 21/790, namely the self-assessment questionnaire (SAQ), the separate report (SR) and the management letter (ML), which are applicable to UCITS, UCIs subject to Part II of the Law of 17 December 2010 (UCIs Part II), Specialised Investment Funds (SIFs) and Investment Companies in Risk Capital (SICARs) (“regulated UCIs”) are available in the CISERO module on the CSSF eDesk platform. At first, the SAQ, the SR (only for UCITS and UCIs Part II) and the ML for the regulated UCIs with a financial year ending between 30 June 2022 and 30 November 2022 are available in the module. Further information on the availability of the reports for the subsequent financial year-ends will be given in due time by means of a dedicated FAQ related to the CISERO module.

In addition, specific information that regulated UCIs have to transmit to the CSSF in accordance with Section 2.2. of Circular CSSF 21/790, in case the approved statutory auditor issues a modified audit opinion for a regulated UCI, is made available on the CSSF website under www.cssf.lu/en/investment-funds-vehicles/, in a dedicated section concerning the periodic transmission of information for the type of UCI falling within the scope of this circular. The letter, signed by the management of the fund, including the required information and all supporting documentation, has to be transmitted in accordance with that circular to the email address opc_sp_courrier@cssf.lu.

WHAT'S NEXT?

In the context of this communication, the CSSF reminds that the requirements introduced by Circular CSSF 21/790 will be applicable as of the financial years ending 30 June 2022, with a phased implementation for the separate report as further specified in the circular.

The CISERO module is available on the CSSF eDesk platform (edesk.apps.cssf.lu) in the section “Investment funds and vehicles/Investment fund managers”. 

Version française

BACKGROUND

Le 31 mars 2022, la Commission de Surveillance du secteur financier (CSSF) a annoncé que les rapports des fonds d'investissement prévus par la circulaire CSSF 21/790 sont disponibles dans eDesk.

Le 22 décembre 2021, la CSSF a publié un communiqué relatif à la publication des circulaires CSSF 21/788, 21/789 et 21/790. Ces circulaires introduisent de nouveaux rapports afin d'améliorer la surveillance basée sur les risques de la CSSF, tant à des fins prudentielles que de lutte contre le blanchiment et le financement du terrorisme, concernant les gestionnaires de fonds d'investissement (GFI) et les organismes de placement collectif (OPC).

Le 10 janvier 2022, le nouveau module " Collective Investment Sector Reporting Tool " (CISERO) a été mis à disposition sur la plateforme eDesk de la CSSF afin de préparer les rapports visés par les circulaires CSSF 21/788 (rapport externe AML/CFT) et CSSF 21/789 (IFMs) et de les soumettre à la CSSF.

WHAT'S NEW?

La CSSF informe qu'à partir du 31 mars 2022, les rapports introduits par la circulaire CSSF 21/790, à savoir le questionnaire d'auto-évaluation (SAQ), le rapport séparé (SR) et la lettre de gestion (ML), qui sont applicables aux OPCVM, aux OPC soumis à la partie II de la loi du 17 décembre 2010 (OPC Partie II), aux Fonds d'Investissement Spécialisés (FIS) et aux Sociétés d'Investissement en Capital à Risque (SICAR) (" OPC réglementés ") sont disponibles dans le module CISERO de la plateforme eDesk de la CSSF. Dans un premier temps, le SAQ, le SR (uniquement pour les OPCVM et OPC Partie II) et le ML pour les OPC réglementés dont l'exercice se termine entre le 30 juin 2022 et le 30 novembre 2022 sont disponibles dans le module. De plus amples informations sur la disponibilité des rapports pour les exercices suivants seront fournies en temps utile au moyen d'une FAQ dédiée au module CISERO.

En outre, les informations spécifiques que les OPC réglementés doivent transmettre à la CSSF conformément à la section 2.2. de la circulaire CSSF 21/790, au cas où le réviseur d'entreprises agréé émet une opinion d'audit modifiée pour un OPC réglementé, sont disponibles sur le site Internet de la CSSF sous www.cssf.lu/en/investment-funds-vehicles/, dans une section dédiée concernant la transmission périodique d'informations pour le type d'OPC entrant dans le champ d'application de cette circulaire. La lettre, signée par la direction du fonds, comprenant les informations requises et toutes les pièces justificatives, est à transmettre conformément à cette circulaire à l'adresse électronique opc_sp_courrier@cssf.lu.

WHAT'S NEXT?

Dans le cadre de cette communication, la CSSF rappelle que les exigences introduites par la circulaire CSSF 21/790 seront applicables à partir des exercices clôturés au 30 juin 2022, avec une mise en œuvre progressive pour le rapport séparé comme précisé plus loin dans la circulaire.

Le module CISERO est disponible sur la plateforme eDesk de la CSSF (edesk.apps.cssf.lu) dans la section " Fonds et véhicules d'investissement/Directeurs de fonds d'investissement ". 

On 31 March 2022, the Commission de Surveillance du secteur financier (CSSF) published its follow-up on modified audit opinions issued by the approved statutory auditors in the context of the statutory audit of UCIs.

This guidance relates to the specific information that managers of the UCI must spontaneously aend it to the CSSF by means of a letter in accordance with section 2.2. of Circular CSSF 21/790 in the event of a modified audit opinion:

• a detailed explanation of the reasons and circumstances
• a detailed explanation of the impacts of the modified audit opinion on the mutual fund and/or the compartment(s) concerned as well as on the investors
• a detailed explanation of the corrective measures and actions taken by the managers of the UCI and/or the service providers concerned to resolve the problems and/or breaches that led to the issuance of a modified audit opinion
• a detailed explanation of the valuation method applied to the investment(s)/ element(s) concerned by the modified audit opinion
• quantitative and qualitative information on the investors of the UCI/sub-fund(s) concerned
• the list, in Excel format, of the subscriptions and redemptions of the UCI/(of) compartment(s) concerned over the financial year concerned
• an organization chart of the investment(s) concerned, where applicable, by the modified audit opinion
• any other useful information allowing a complete understanding and evaluation of the situation and the elements related to the modified audit opinion

The letter, signed by the UCI’s dirigeants, must be transmitted to the CSSF at the email address: opc_sp_courrier@cssf.lu and all supporting information and documents must be enclosed.

Version française

Le 31 mars 2022, la Commission de Surveillance du secteur financier (CSSF) a publié son suivi des opinions d'audit modifiées émises par les réviseurs d'entreprises agréés dans le cadre du contrôle légal des OPC.

Ce suivi porte sur les informations spécifiques que les gestionnaires de l'OPC doivent spontanément communiquer à la CSSF par le biais d'une lettre conformément au point 2.2. de la circulaire CSSF 21/790 en cas d'opinion d'audit modifiée :

• une explication détaillée des raisons et des circonstances
• une explication détaillée des impacts de l'opinion d'audit modifiée sur le fonds commun de placement et/ou le(s) compartiment(s) concerné(s) ainsi que sur les investisseurs
• une explication détaillée des mesures et actions correctives prises par les gestionnaires de l'OPC et/ou les prestataires de services concernés pour résoudre les problèmes et/ou manquements ayant conduit à l'émission d'une opinion d'audit modifiée
• une explication détaillée de la méthode d'évaluation appliquée au(x) investissement(s)/élément(s) concerné(s) par l'opinion d'audit modifiée
• des informations quantitatives et qualitatives sur les investisseurs de l'OPC/du/des compartiment(s) concerné(s)
• la liste, en format Excel, des souscriptions et rachats de l'OPC/du/des compartiment(s) concerné(s) au cours de l'exercice concerné
• un organigramme du ou des investissements concernés, le cas échéant, par l'opinion d'audit modifiée
• toute autre information utile permettant une compréhension et une évaluation complètes de la situation et des éléments liés à l'opinion d'audit modifiée.

La lettre, signée par les dirigeants de l'OPC, doit être transmise à la CSSF à l'adresse électronique : opc_sp_courrier@cssf.lu et toutes les informations et documents justificatifs doivent être joints.

On 2 March 2022, the Commission de Surveillance du secteur financier (CSSF) updated the Form for any notification regarding the free provision of services and amendments to the information included in such a notification, as regards to Article 18 of UCITS Directive and Article 33 of AIFMD. 

Version française

Le 2 mars 2022, la Commission de Surveillance du secteur financier (CSSF) a mis à jour le Formulaire pour toute notification concernant la libre prestation de services et les modifications des informations incluses dans une telle notification, au regard de l'article 18 de la directive OPCVM et de l'article 33 de la AIFMD.

On 18 March 2022, the Commission de Surveillance du secteur financier (CSSF) published FAQ Report on AML/CFT for Luxembourg investment funds and Luxembourg Investment Fund Managers.

The Report refers to a list of questions & answers (FAQ) in relation to the completion and transmission of the AML/CFT compliance officer’s summary Report as defined in Article 42 (6) and 42 (7) of the CSSF Regulation No 12-02 of 14 December 2012 on the fight against money laundering and terrorist financing. The list of questions is as follows:

Q1. Which entities are required to write and submit an AML/CFT RC report to the CSSF?

Q2. Should an entity be dissolved and placed into non-judicial liquidation, shall an AML/CFT RC report still be submitted?

Q3. What is the submission deadline for the AML/CFT RC report?

Q4. How should the AML/CFT RC report be transmitted to the CSSF?

Q5. Shall the AML/CFT RC report be signed by the RC?

Q6. Should “no findings” be reported in the AML/CFT RC report?

Q7. What should the AML/CFT RC report contain?

Q8. What do you mean by “results of AML/CFT due diligence”?

Q9. Extent of the RC’s liability irrespective of his/her nomination date

Q10. Can the failure to submit an RC report lead to sanctions by the CSSF?

Version française

Le 18 mars 2022, la Commission de Surveillance du secteur financier (CSSF) a publié le FAQ Report on AML/CFT for Luxembourg investment funds and Luxembourg Investment Fund Managers.

Le Rapport renvoie à une liste de questions & réponses (FAQ) relatives à la réalisation et à la transmission du Rapport sommaire du responsable de la conformité en matière de LBC/FT tel que défini à l'article 42 (6) et 42 (7) du Règlement CSSF n° 12-02 du 14 décembre 2012 relatif à la lutte contre le blanchiment de capitaux et le financement du terrorisme. La liste des questions est la suivante :

Q1. Quelles sont les entités qui sont tenues de rédiger et de soumettre un rapport RC LAB/CFT à la CSSF ?

Q2. Si une entité est dissoute et placée en liquidation non judiciaire, une déclaration RC LAB/CFT doit-elle quand même être soumise ?

Q3. Quel est le délai de soumission de la déclaration RC LAB/CFT ?

Q4. Comment la déclaration RC LAB/CFT doit-elle être transmise à la CSSF ?

Q5. Le rapport du RC AML/CFT doit-il être signé par le RC ?

Q6. La mention " pas de constat " doit-elle figurer dans le rapport du CR LBC/FT ?

Q7. Que doit contenir le rapport du CR LBC/FT ?

Q8. Qu'entendez-vous par " résultats de la diligence raisonnable en matière de LBC/FT " ?

Q9. Étendue de la responsabilité du RC indépendamment de sa date de nomination

Q10. Le fait de ne pas soumettre un rapport de RC peut-il conduire à des sanctions de la part de la CSSF ?

On 21 March 2022, the Commission de Surveillance du secteur financier (CSSF) published the post-liquidation form, relevant for:

• Investment companies in risk capital (SICAR)
• Specialised investment funds (SIF)
• Undertakings for collective investment (UCI)
• Undertakings for collective investment in transferable securities (UCITS)

Version française

Le 21 mars 2022, la Commission de Surveillance du secteur financier (CSSF) a publié le formulaire de post-liquidation, pertinent pour :

• Les sociétés d'investissement en capital à risque (SICAR)
• les fonds d'investissement spécialisés (FIS)
• les organismes de placement collectif (OPC)
• Les organismes de placement collectif en valeurs mobilières (OPCVM)

On 4 March 2022, the Commission de Surveillance du secteur financier (CSSF) announced the launching of platform eRIIS (electronic Reporting of Information concerning Issuers of Securities) for issuers or other persons subject to the Transparency Law and the Market Abuse Regulation. As from 4 March 2022, these persons will be able to fulfil their filing obligations through eRIIS. On the same day, the CSSF adopted Circular CSSF 22/800 updating Circular  08/349 relating to details regarding the information to be notified with respect to major holdings in accordance with the Law of 11 January 2008 on transparency requirements for issuers, and Circular 22/799 updating Circular CSSF 08/337 on the Law of 11 January 2008 and of the Grand-ducal regulation of 11 January 2008 on transparency requirements for issuers.

These two circulars take into account the changes that have taken place in connection with the introduction of the CSSF web application called eRIIS. This application was developed to enable entities subject to the Law of 11 January 2008 on transparency requirements for issuers as well as Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse to fulfil their filing obligations with the CSSF. 

The new web application replaces the current CSSF filing process via email for the major legal filing requirements applicable to the following two types of persons: (1) issuers of securities and (2) holders of securities (for notifications of major holdings and for notifications of persons discharging managerial responsibilities within an issuer). It will also serve as a main communication channel between these persons or entities and the CSSF.

eRIIS is designed both as a regulatory filing system and a secure channel of communication with the CSSF. eRIIS will thus not only ensure a state-of-the-art protection of data exchanges with the competent authority, but will also allow to follow-up on regulatory filings, notably by consulting various dashboards and tracking the status of individual filings. In addition, eRIIS offers advanced functionalities for the filing and validation of annual financial reports drawn up under the new ESEF format. eRIIS will furthermore allow to adequately manage the Reporting Entities’ data while at the same time offering the possibility of delegating administrative tasks to third parties by defining various levels of access rights for different users.

Other key information include:

• eRIIS access: The new application can be accessed by clicking on the following link (https://eriis.apps.cssf.lu/eriis/) or via a dedicated icon on the CSSF website5.
• Security: A LuxTrust certificate is required to access the eRIIS platform (to guarantee a proper and strong authentication) and get an eRIIS user account. As a consequence, persons who do not already possess a LuxTrust certificate, need to order one as soon as possible.
• Documentation: A page dedicated to eRIIS has been added on the CSSF website to help to get started. It contains an FAQ document (about LuxTrust certificates and user accounts), several User Guides (to introduce the main concepts and elements of eRIIS) as well as other useful information. The Circulars CSSF 08/337 and CSSF 08/349 have also been updated accordingly.
• Transition period: All concerned persons are encouraged to use eRIIS as soon as possible. Note however that filings per email will be tolerated until 30 May 2022 to allow sufficient time to complete all administrative tasks necessary for accessing eRIIS.

The CSSF is aware that this represents a major change in the filing process and thanks all concerned persons for promptly adapting to it. For any question, please feel free to send an email to eRIIS.support@cssf.lu.

Version française

Le 4 mars 2022, la Commission de Surveillance du secteur financier (CSSF) a annoncé le lancement de la plateforme eRIIS (déclaration électronique d'informations concernant les émetteurs de titres) à destination des émetteurs ou autres personnes soumises à la loi Transparence et au règlement Abus de marché. A partir du 4 mars 2022, ces personnes pourront remplir leurs obligations déclaratives via eRIIS. Le même jour, la CSSF a adopté la circulaire CSSF 22/800 mettant à jour la circulaire 08/349 relative au détail des informations à notifier sur les participations importantes conformément à la loi du 11 janvier 2008 relative aux obligations de transparence des émetteurs, et la circulaire 22 /799 mettant à jour la circulaire CSSF 08/337 relative à la loi du 11 janvier 2008 et au règlement grand-ducal du 11 janvier 2008 relatifs aux obligations de transparence des émetteurs.

Ces deux circulaires tiennent compte des changements intervenus dans le cadre de la mise en place de l'application web CSSF dénommée eRIIS. Cette application a été développée pour permettre aux entités soumises à la loi du 11 janvier 2008 relative aux obligations de transparence des émetteurs ainsi qu'au règlement (UE) n° 596/2014 du Parlement européen et du Conseil du 16 avril 2014 sur les abus de marché de remplir leur déclaration obligations vis-à-vis de la CSSF.

La nouvelle application web remplace l'actuelle procédure de dépôt auprès de la CSSF par e-mail pour les principales obligations légales de dépôt applicables aux deux catégories de personnes suivantes : (1) émetteurs de valeurs mobilières et (2) détenteurs de valeurs mobilières (pour les notifications de participations importantes et pour les notifications de personnes exerçant des responsabilités dirigeantes au sein d'un émetteur). Il servira également de canal de communication principal entre ces personnes ou entités et la CSSF.

eRIIS est conçu à la fois comme un système de dépôt réglementaire et comme un canal de communication sécurisé avec la CSSF. eRIIS assurera ainsi non seulement une protection de pointe des échanges de données avec l'autorité compétente, mais permettra également un suivi des dépôts réglementaires, notamment par la consultation de différents tableaux de bord et le suivi de l'état des dépôts individuels. De plus, eRIIS offre des fonctionnalités avancées pour le dépôt et la validation des rapports financiers annuels établis sous le nouveau format ESEF. eRIIS permettra en outre de gérer adéquatement les données des Entités déclarantes tout en offrant la possibilité de déléguer des tâches administratives à des tiers en définissant différents niveaux de droits d'accès pour différents utilisateurs.

Les autres informations clés incluent :

• Accès eRIIS : La nouvelle application est accessible en cliquant sur le lien suivant (https://eriis.apps.cssf.lu/eriis/) ou via une icône dédiée sur le site internet de la CSSF5.
• Sécurité : Un certificat LuxTrust est nécessaire pour accéder à la plateforme eRIIS (afin de garantir une authentification correcte et forte) et obtenir un compte utilisateur eRIIS. Par conséquent, les personnes qui ne possèdent pas encore de certificat LuxTrust doivent en commander un dans les plus brefs délais.
• Documentation : Une page dédiée à eRIIS a été ajoutée sur le site Internet de la CSSF pour faciliter la prise en main. Il contient un document FAQ (sur les certificats LuxTrust et les comptes utilisateurs), plusieurs User Guides (pour introduire les principaux concepts et éléments d'eRIIS) ainsi que d'autres informations utiles. Les circulaires CSSF 08/337 et CSSF 08/349 ont également été mises à jour en conséquence.
• Période de transition : Toutes les personnes concernées sont encouragées à utiliser eRIIS dès que possible. Notez cependant que les dépôts par e-mail seront tolérés jusqu'au 30 mai 2022 afin de laisser suffisamment de temps pour effectuer toutes les tâches administratives nécessaires à l'accès à eRIIS.

La CSSF est consciente qu'il s'agit d'un changement majeur dans le processus de dépôt et remercie toutes les personnes concernées de s'y être rapidement adaptées. Pour toute question, n'hésitez pas à envoyer un email à eRIIS.support@cssf.lu.

On 2 March 2022, the Commission de Surveillance du Secteur Financier (CSSF) issued a warning conerning the website www.bf-investment.net.

The Commission de Surveillance du Secteur Financier (CSSF) warns the public about the website www.bf-investment.net where an entity offers investment services, including a so-called "Turquoise" investment booklet, under the name "Bayer & François" or "BF Finance", claiming to be established at 16, Bld Royal, Luxembourg and at 2A rue des Capucines, Luxembourg

The CSSF informs the public that the entity presenting itself on this website as "Bayer & François" or "BF Finance" is unknown to it, is not regulated by the CSSF and is not licensed to provide investment or other financial services in or from Luxembourg.

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Le 2 mars 2022, la Commission de Surveillance du Secteur Financier (CSSF) a émis un avertissement concernant le site internet www.bf-investment.net.

La Commission de Surveillance du Secteur Financier (CSSF) met le public en garde à l’égard des sites Internet www.bf-investment.net et www.bayer-francois.com où une entité offre des services d’investissement, dont entre autres un soi-disant livret de placement « Turquoise », sous la dénomination « Bayer & François » ou « BF Finance », en prétendant être établie au 16, Bld Royal, Luxembourg et au 2A rue des Capucines, Luxembourg.

La CSSF informe le public que l’entité qui se présente sur ce site Internet comme « Bayer & François » ou « BF Finance » lui est inconnue, n’est pas surveillée par la CSSF et ne dispose d’aucun agrément pour la prestation de services d’investissement ou d’autres services financiers au ou à partir du Luxembourg.

On 11 March 2022, the Federal Council published a communication saying it intends to introduce a new instrument to strengthen the stability of the financial sector.

At its meeting on 11 March 2022, it set out the broad lines of a public liquidity backstop. This instrument would enable the Confederation and the Swiss National Bank (SNB) to consolidate the liquidity of systemically important banks engaged in a reorganisation procedure. The Federal Department of Finance (FDF) will draw up a draft for consultation by summer 2023.

Since the global financial crisis from 2007 to 2009, the importance of liquidity for the stability of systemically important banks and the economy as a whole is well established. Thus, in order to increase the resilience of these banks to crises and reduce risks to the economy, Swiss law provides for increased requirements in terms of capital and liquidity as well as in terms of reorganisation and liquidation (too big to fail settlement).

To be successful, a remediation procedure must be based on a credible and enforceable plan. It must also be ensured that institutions have sufficient liquidity and that creditors have sufficient loss-absorbing capacity to recapitalise a bank threatened with insolvency (bail-in capacity). The liquidity requirements for systemically important banks have been revised and raised and are expected to enter into force on 1 July 2022. They aim to ensure that the institutions concerned have sufficient liquidity to deal with as many crisis scenarios as possible. They also ensure that systemically important banks have, in accordance with the Banking Act, an increased resilience compared to other institutions.

Despite the increase in liquidity requirements, a systemically important bank may not have the liquidity to be cleaned up. In such cases, the SNB is already making additional liquidity available today as an emergency liquidity assistance.

In order to increase market participants' confidence in the viability of a recapitalised and solvent systemically important bank, additional liquidity may be made temporarily available to the institutions concerned as part of a public liquidity backstop. Applied in the alternative and as a third line of defence, this instrument aims to provide liquidity quickly to a systemically important bank domiciled in Switzerland when this is necessary for the success of the consolidation. It helps to ensure that current or future market participants are willing to maintain or establish business relationships with the bank concerned. Its existence acts preventively even before aid in the form of liquidity is needed. This instrument differs from the rescue of a systemically important bank by the State.

Internationally, the public liquidity backstop is part of the standard crisis management system. Its introduction into Swiss law would increase the chances of successful restructuring and allow Swiss systemically important banks to be on an equal footing with their foreign competitors.

The guidelines set today by the Federal Council provide for the inclusion of this instrument in law. The aid for a systemically important bank would thus be allocated by the SNB in the form of a loan covered by a guarantee from the Confederation. It would also be accompanied by a lien in the event of bankruptcy, in order to avoid possible losses for the Confederation, and a compensation and sanction mechanism.

The Federal Council has instructed the FDF to draw up a draft for consultation by summer 2023.

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Le 11 mars 2022, le Conseil fédéral a publié une communication indiquant qu'il entendait introduire un nouvel instrument pour renforcer la stabilité du secteur financier.

Lors de sa séance du 11 mars 2022, il a défini les grandes lignes d'une garantie de liquidité publique. Cet instrument permettrait à la Confédération et à la Banque nationale suisse (BNS) de consolider les liquidités des banques d'importance systémique engagées dans une procédure d'assainissement. Le Département fédéral des finances (DFF) élaborera un projet qui sera mis en consultation d'ici à l'été 2023.

Depuis la crise financière mondiale de 2007 à 2009, l'importance des liquidités pour la stabilité des banques d'importance systémique et de l'économie dans son ensemble n'est plus à démontrer. Ainsi, afin d'accroître la résilience de ces banques face aux crises et de réduire les risques pour l'économie, le droit suisse prévoit des exigences accrues en matière de fonds propres et de liquidités ainsi qu'en matière d'assainissement et de liquidation (règlement too big to fail).

Pour réussir, une procédure d'assainissement doit reposer sur un plan crédible et applicable. Il faut également veiller à ce que les établissements disposent de liquidités suffisantes et que les créanciers aient une capacité d'absorption des pertes suffisante pour recapitaliser une banque menacée d'insolvabilité (capacité de renflouement). Les exigences en matière de liquidités pour les banques d'importance systémique ont été revues et relevées et devraient entrer en vigueur le 1er juillet 2022. Elles visent à garantir que les établissements concernés disposent de liquidités suffisantes pour faire face au plus grand nombre possible de scénarios de crise. Elles garantissent également que les banques d'importance systémique ont, conformément à la loi sur les banques, une résilience accrue par rapport aux autres établissements.

Malgré l'augmentation des exigences en matière de liquidités, il se peut qu'une banque d'importance systémique ne dispose pas des liquidités nécessaires pour être assainie. Dans ce cas, la BNS met dès aujourd'hui des liquidités supplémentaires à disposition sous la forme d'une aide d'urgence en matière de liquidités.

Afin d'accroître la confiance des acteurs du marché dans la viabilité d'une banque d'importance systémique recapitalisée et solvable, des liquidités supplémentaires peuvent être mises temporairement à la disposition des établissements concernés dans le cadre d'une garantie de liquidité publique. Appliqué à titre alternatif et comme troisième ligne de défense, cet instrument vise à fournir rapidement des liquidités à une banque d'importance systémique domiciliée en Suisse lorsque cela est nécessaire au succès de la consolidation. Il contribue à ce que les acteurs actuels ou futurs du marché soient disposés à maintenir ou à établir des relations d'affaires avec la banque concernée. Son existence agit de manière préventive avant même qu'une aide sous forme de liquidités soit nécessaire. Cet instrument se distingue du sauvetage d'une banque d'importance systémique par l'État.

Sur le plan international, la garantie de liquidité publique fait partie du système standard de gestion des crises. Son introduction dans le droit suisse augmenterait les chances de réussite des restructurations et permettrait aux banques suisses d'importance systémique d'être sur un pied d'égalité avec leurs concurrentes étrangères.

Les directives fixées aujourd'hui par le Conseil fédéral prévoient l'inscription de cet instrument dans la loi. L'aide à une banque d'importance systémique serait ainsi allouée par la BNS sous la forme d'un prêt couvert par une garantie de la Confédération. Elle serait également assortie d'un privilège en cas de faillite, afin d'éviter d'éventuelles pertes pour la Confédération, et d'un mécanisme de compensation et de sanction.

Le Conseil fédéral a chargé le DFF d'élaborer un projet à mettre en consultation d'ici à l'été 2023.

On 4 March 2022, the Swiss National Bank (SNB) set criteria for admitting DLT trading facilities to Swiss Interbank Clearing payment system.

The Federal Act on the Adaptation of Federal Law to Developments in Distributed Ledger Technology, which came into force on 1 August 2021, saw the creation of the licensing category ‘DLT trading facilities’ in the Financial Market Infrastructure Act (FinMIA). DLT trading facilities are financial market infrastructures for multilateral trading of DLT securities. Furthermore, DLT trading facilities must hold DLT securities in central custody, or clear and settle such securities, or must, in addition to financial intermediaries, also admit other companies and private individuals to trading. 

One of the SNB’s statutory tasks is to facilitate and secure the operation of cashless payment 

systems. As commissioning party of the Swiss Interbank Clearing (SIC) system, the SNBadmits applicants that make a significant contribution to the fulfilment of the SNB’s statutory tasks, where doing so does not pose any major risks. The SNB will therefore now admit DLT trading facilities with FINMA licences to the SIC system, provided they operate a securities settlement system and settle payments in Swiss francs via the SIC system.

Version française

Le 4 mars 2022, la Banque nationale suisse (BNS) a fixé les critères d'admission des installations de négoce DLT dans le système de paiement Swiss Interbank Clearing.

La loi fédérale sur l'adaptation du droit fédéral à l'évolution de la technologie des grands livres (Distributed Ledger Technology), entrée en vigueur le 1er août 2021, a vu la création de la catégorie d'autorisation "DLT trading facilities" dans la loi sur l'infrastructure des marchés financiers (FinMIA). Les installations de négociation DLT sont des infrastructures de marché financier pour la négociation multilatérale de titres DLT. En outre, les installations de négoce DLT doivent détenir des titres DLT en dépôt central, ou compenser et régler ces titres, ou encore admettre, outre les intermédiaires financiers, d'autres entreprises et particuliers au négoce. 

L'une des tâches légales de la BNS consiste à faciliter et à sécuriser l'exploitation des systèmes de paiement sans numéraire. 

de paiement sans numéraire. En tant que mandant du système Swiss Interbank Clearing (SIC), la BNS admet les requérants qui contribuent de manière significative à l'accomplissement de ses tâches légales, lorsque cela ne présente pas de risques majeurs. La BNS admettra donc désormais les installations de négoce DLT disposant d'une licence de la FINMA dans le système SIC, à condition qu'elles exploitent un système de règlement des titres et règlent les paiements en francs suisses via le système SIC.

On 4 march 2022, the Federal Council launched the second stage of joint master data management.

The joint management of the Confederation's master data is an important element of the digital transformation. At its meeting on 4 March 2022, the Federal Council took note of the results of the first stage of the project and gave the mandates for the implementation of the second stage. This aims to ensure that after the data of the companies, the personal data are in turn the subject of a single collection for multiple use (principle "once only").

Master data is data such as name and address, which are used in many business processes. While respecting data protection, the Confederation intends to manage them in a coordinated manner and allow their use by the administrations of the three levels of the State. Thus, ideally, a person should only communicate his data to the authorities once. Once the data has been entered, it is no longer necessary to repeat the operation during subsequent contacts with the federal, cantonal or communal authorities.

Such joint data management reduces the administrative burden on citizens and businesses. It leads to more efficient services and better data quality. It becomes easier for the administration and its customers to detect erroneous data and correct it.

The work on the baseline data is based on the "Strategy for the Development of the Confederation's Joint Master Data Management" adopted by the Federal Council on 19 December 2018 and implemented in several stages. The first stage (2019 to 2021) provided for the implementation of legal, organisational and technical measures for the joint management and use of company reference data. Now, the Federal Council takes note of the report on the results of this first stage. It also adopted the corresponding partial revision of the Ordinance on the Register of Enterprises and Establishments (OREE). 

The second stage, planned for 2022 to 2024, focuses on the joint management and use of baseline data on natural persons, buildings and dwellings. In addition, geoinformation will be integrated into the joint management of the Confederation's reference data. The Federal Council approved the implementation and gave the corresponding mandates.

Data protection and information security play a particularly important role in the work on personal data. In particular, attention should be paid to the following points:

• reference data are indications such as surname, first name and AHV number: these are not sensitive data. They must not allow personality profiles to be deduced;
• they may be processed exclusively in the context of the execution of the legal mandate of the administrative units concerned;
• access is limited within administrations depending on data protection and intended use.

Coordination with the cantons and communes: The sharing and joint management of data increases the importance for authorities to coordinate between different administrative levels. The second stage is therefore coordinated with other projects such as the national data management of the Swiss Digital Administration (ANS). The next work consists of examining the legal, organizational and technical requirements for the second stage. The implementation will then be done as and when. A report must be submitted to the Federal Council by the end of 2024 and the next development steps must be proposed.

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Le 4 mars 2022, le Conseil fédéral a lancé la deuxième étape de la gestion commune des données de base.

La gestion commune des données de base de la Confédération est un élément important de la transformation numérique. Lors de sa séance du 4 mars 2022, le Conseil fédéral a pris connaissance des résultats de la première étape du projet et a donné les mandats pour la mise en œuvre de la deuxième étape. Celle-ci vise à ce qu'après les données des entreprises, les données personnelles fassent à leur tour l'objet d'une seule collecte pour un usage multiple (principe ""once only"").

Les données de base sont des données telles que le nom et l'adresse, qui sont utilisées dans de nombreux processus commerciaux. Tout en respectant la protection des données, la Confédération entend les gérer de manière coordonnée et permettre leur utilisation par les administrations des trois niveaux de l'Etat. Ainsi, idéalement, une personne ne devrait communiquer ses données aux autorités qu'une seule fois. Une fois les données saisies, il n'est plus nécessaire de répéter l'opération lors des contacts ultérieurs avec les autorités fédérales, cantonales ou communales.

Cette gestion commune des données réduit la charge administrative des citoyens et des entreprises. Elle conduit à des services plus efficaces et à une meilleure qualité des données. Il devient plus facile pour l'administration et ses clients de détecter les données erronées et de les corriger.

Les travaux sur les données de base se fondent sur la ""Stratégie pour le développement de la gestion commune des données de base de la Confédération"" adoptée par le Conseil fédéral le 19 décembre 2018 et mise en œuvre en plusieurs étapes. La première étape (2019 à 2021) prévoyait la mise en œuvre de mesures juridiques, organisationnelles et techniques pour la gestion et l'utilisation communes des données de référence des entreprises. Maintenant, le Conseil fédéral prend connaissance du rapport sur les résultats de cette première étape. Il a également adopté la révision partielle correspondante de l'ordonnance sur le registre des entreprises et des établissements (OREE). 

La deuxième étape, prévue entre 2022 et 2024, porte sur la gestion et l'utilisation communes des données de base sur les personnes physiques, les bâtiments et les logements. En outre, la géoinformation sera intégrée dans la gestion commune des données de référence de la Confédération. Le Conseil fédéral a approuvé la mise en œuvre et donné les mandats correspondants.

La protection des données et la sécurité de l'information jouent un rôle particulièrement important dans les travaux relatifs aux données personnelles. Il convient notamment de prêter attention aux points suivants :

• les données de référence sont des indications telles que le nom, le prénom et le numéro AVS : ce ne sont pas des données sensibles. Elles ne doivent pas permettre de déduire des profils de personnalité ;
• elles peuvent être traitées exclusivement dans le cadre de l'exécution du mandat légal des unités administratives concernées ;
• l'accès est limité au sein des administrations en fonction de la protection des données et de l'utilisation prévue.

Coordination avec les cantons et les communes : Le partage et la gestion commune des données augmentent l'importance pour les autorités de se coordonner entre les différents niveaux administratifs. La deuxième étape est donc coordonnée avec d'autres projets tels que la gestion nationale des données de l'Administration numérique suisse (ANS). Les prochains travaux consistent à examiner les exigences juridiques, organisationnelles et techniques de la deuxième étape. La mise en œuvre se fera ensuite au fur et à mesure. Un rapport doit être remis au Conseil fédéral d'ici fin 2024 et les prochaines étapes de développement doivent être proposées.

On 29 March 2022, the Asset Management Association Switzerland  (AMAS) published Circular 03/2022 on prospectuses with new sequence in accordance with Annex 6 of the Financial Services Ordinance (FinSO).

On 28 September 2021 the Asset Management Association Switzerland published its self-regulation materials (Guidelines and model documents including prospectuses, see Circular 06/2021 of 28 September 2021), which had been revised in line with FinSA and FinIA. At that time, the sequence of contents in the prospectuses had not yet been adapted in accordance with Annex 6 of the Financial Services Ordinance (FinSO); the prospectuses were still based on the old, well-known system. 

As announced in Circulars 06/2021 and 01/2022 dated 26 January 2022, the prospectuses for securities funds (contractual and SICAV) and real estate funds (contractual and SICAV) with the new FinSO sequence have been published today in German and French. As well as the new system, some minor changes have been made to the content. These are shown in Track Changes mode. The movements of text due to the new sequence are not shown in Track Changes (to improve readability). 

Fund institutions that have revised their prospectuses on the basis of the previous system and have already submitted their fund documents to FINMA or published them do not have to make any further changes or resubmit their fund documents at the present time. They will only have to bring their prospectuses into line with the new sequence the next time they are revised. The same applies to institutions that have already completed the revision of their fund documents and have planned to submit them in the next few days. In all cases, however, the prospectuses have to be in the new sequence by 1 April 2023. 

Non-members who have already paid for model documents will receive updated versions of the documents they have purchased free of charge from the Executive Board, including versions in which the latest amendments are visible

Version française

Le 29 mars 2022, l'Asset Management Association Switzerland (AMAS) a publié la circulaire 03/2022 sur les prospectus avec une nouvelle séquence selon l'annexe 6 de l'ordonnance sur les services financiers (OSF).

Le 28 septembre 2021, l'Asset Management Association Switzerland a publié son matériel d'autorégulation (Directives et documents modèles, y compris les prospectus, voir la circulaire 06/2021 du 28 septembre 2021), qui avait été révisé conformément à FinSA et FinIA. À l'époque, l'ordre des contenus dans les prospectus n'avait pas encore été adapté conformément à l'annexe 6 de l'ordonnance sur les services financiers (OSF) ; les prospectus étaient encore basés sur l'ancien système bien connu. 

Comme annoncé dans les circulaires 06/2021 et 01/2022 du 26 janvier 2022, les prospectus des fonds en valeurs mobilières (contractuels et SICAV) et des fonds immobiliers (contractuels et SICAV) avec la nouvelle séquence FinSO ont été publiés aujourd'hui en allemand et en français. Outre le nouveau système, quelques modifications mineures ont été apportées au contenu. Celles-ci sont indiquées en mode "Track Changes". Les déplacements de texte dus à la nouvelle séquence ne sont pas indiqués dans le mode Track Changes (pour améliorer la lisibilité). 

Les institutions de fonds qui ont révisé leurs prospectus sur la base de l'ancien système et qui ont déjà remis leurs documents de fonds à la FINMA ou les ont publiés ne doivent pas procéder à d'autres modifications ni remettre leurs documents de fonds à l'heure actuelle. Ils devront seulement adapter leurs prospectus à la nouvelle séquence lors de leur prochaine révision. Il en va de même pour les institutions qui ont déjà terminé la révision de leurs documents de fonds et qui ont prévu de les soumettre dans les prochains jours. Dans tous les cas, cependant, les prospectus doivent être conformes à la nouvelle séquence pour le 1er avril 2023. 

Les non-membres qui ont déjà payé pour des documents modèles recevront gratuitement du Directoire des versions actualisées des documents qu'ils ont achetés, y compris des versions dans lesquelles les dernières modifications sont visibles.

On 15 March 2022, the Autoriteit Financiële Markten (AFM) pointed out additional requirements for diversity policy for investment firms.

The updated EBA/ESMA Guidelines on the assessment of the suitability of members of the

management body and key function holders under CRD and MiFID, published in 2021, set additional requirements for the diversity policy of investment firms. The Netherlands Authority for the Financial Markets (AFM) would like to remind investment firms once again that their policies on appointments, training and diversity must be in line with these Guidelines.

Diversity policies previously had to consider age, gender, geographic spread, education and experience. According to the revised EBA/ESMA Guidelines, the diversity policy must now include aspects such as origin, color, ethnicity, religion, disability or sexual orientation.  It has also been clarified that corporate policies should include measures to achieve that diversity, for example in the areas of career planning, training, active reintegration of employees after leave and anti-discrimination measures. These measures should therefore apply to a broader circle than just the management board. 

The AFM expects investment firms to have policies in place on appointments, training and diversity of the management board. This policy may be fleshed out proportionally; the AFM expects a more extensive policy in this area from an investment firm with around 200 employees than from one with around 5 employees. 

When notifying new executive and supervisory board members, the AFM expects investment firms to include the diversity policy in the considerations for the appointment included in the covering letter and the suitability matrix of the collective. 

On 18 March 2022, the Comisión Nacional Bancaria y de Valores (CNBV) published a communication on the establishement of a Gender Equality Committee by the Authorities of the institutions of the financial system.

Eleven institutions of the public and private sector of the financial system, plus the governing institution of the gender agenda in Mexico, signed the Agreement on Coordination and Inter-institutional Public-Private Collaboration for the installation of the Inter-institutional Committee for Gender Equality in Financial Institutions (CIIGEF).

The objective is to promote greater inclusion of women in the financial sector and in the economy of our country that allows to promote financial inclusion. It also seeks to achieve greater representation of women in decision-making positions, which will contribute to Mexico's growth and productivity.

The first session of the CIIGEF was held where the diagnosis on gender equality in the financial sector was presented. This document will be the baseline for the Committee's actions.

On 1 March 2022, Spain published Law 4/2022, of 25 February, on the protection of consumers and users against situations of social and economic vulnerability.

Due to the COVID-19 pandemic, the concept of "vulnerable" consumer has taken on a new meaning. More people has fallen in this category and this situation has deepened the need to protect those who have found themselves in a special situation of vulnerability in a consumer relationship. This is the purpose of this law.

Although it applies in a cross-sectoral way, it is important to consider the sectors relating to technologies and finances/ banking.

First, there is a digital divide in consumer relations. Although technological progress has in many respects opened up new opportunities for consumption, it can place the 4.7% of the population that does not have an internet connection in a situation of vulnerability. However, it is not only important to be able to access these services in order to be able to function on an equal footing in consumer relations, but it is also essential to acquire technological skills and knowledge in order to operate properly in online commerce-

Second, place of residence can also be a cause of vulnerability in consumer relations as it determines people's access to bank branches.

Considering what precedes, the Government will promote, in coordination with the Banco de España as supervisor, and representatives of the credit institution sector, a Plan of Measures to favour the inclusion of the most vulnerable people, especially the elderly, including, among others, the following measures:

a) The closure of bank branches should not be accompanied by the closure of their external ATMs.

b) An increase in the number of support staff to help people with lower digital skills to carry out the necessary operations. 

b) Increasing the number of support staff to help people with lower digital skills to carry out the necessary operations.

c) The installation of signs and indications of priority in the use of ATMs by vulnerable people.

d) Promote the reservation of ATMs for the exclusive use of vulnerable people.

e) Simple, understandable, inclusive and secure banking access technologies.

f) Maximum security, to protect bank users from theft, deception and online scams.

g) Any measures deemed necessary to guarantee face-to-face service for the elderly and for all those groups for whom access to financial services through new technologies constitutes a reason for financial exclusion.

h) Any measures deemed appropriate to bring financial services closer to everyone, especially in rural areas, to make them more accessible, taking special account of the needs of the disabled and the elderly.

The Government will also continue to promote, among the strategic lines of action of the state-owned company Correos y Telégrafos, S.A., initiatives to prevent the financial exclusion of vulnerable consumers, such as the installation of ATMs in its branches in small population centres without this type of service or the signing of collaboration agreements with banks to carry out cash deposit and withdrawal operations.

On 30March 2022, Spain published Resolution of 29 March 2022 of the Secretary of State for the Economy and Business Support, on the Agreement of the Council of Ministers of 29 March 2022, amending the Code of Good Practice for the renegotiation framework for customers with guaranteed financing provided for in Royal Decree-Law 5/2021 of 12 March.

The Council of Ministers agreed to modify the Code of Good Practice, which constitutes the framework for renegotiating the conditions of financing customers with loans with public guarantees of the COVID lines, to support the liquidity of companies that have been especially affected by the increase in energy and raw materials prices.

In this way, the self-employed and companies with guaranteed financing through the ICO COVID Guarantee Lines will be able to request the extension of the expiration period of these operations, even if their turnover had not fallen by 30% or more in 2020 compared to the one they had in 2019. In this way, the universe of debtors entitled to an extension of the maturity period of their guaranteed operations is expanded, allowing the payment profile to be softened and their financial burden alleviated.

Likewise, the self-employed and SMEs in the sectors of road transport, agriculture, livestock and fishing, the most affected by the rise in energy and raw material costs, if they have requested and obtained an extension of the maturity period of their guaranteed financing operations, may request the additional extension of six months of the lack of amortization quotas of the principal of the operation. Debtors who, fulfilling the requirements to obtain an extension of the maturity period of their guaranteed operations, cannot obtain it because they have reached the total maturity limit of eight or ten years may also benefit from this deficiency.

The entities voluntarily adhering to the Code of Good Practices undertake to maintain the limits and conditions of the working capital lines to their customers until September 2022.The maintenance of these working capital lines will be until June 30, 2023 those debtors who benefit from any of the renegotiation measures included in the Code of Good Practices itself.

The royal decree-law adopted today also includes measures in the field of cybersecurity, such as the possibility of extending the deadlines of administrative procedures when the services and systems used for the processing of procedures have been seriously affected by a cyber incident or the possibility of requiring additional security measures from cloud service providers for Public Administrations.

In this area and within the National Response Plan, the approval of a new national Cybersecurity Plan is also contemplated, with a budget of more than 1,000 million and which includes 140 actions – with different levels of priority – to be able to respond adequately to the greatest risk in the current geopolitical context.

It also includes the acceleration of the constitution of the Cybersecurity Operations Center of the General State Administration and its public bodies to increase the capacity for surveillance and threat detection in the daily operation of its information and communications systems.

On the other hand, the Council of Ministers has approved another royal decree law, which is associated with the so-called "5G Cybersecurity Law" that will guarantee the maximum protection of 5G networks and services against attacks or security incidents.

The approval of the '5G Cybersecurity Law', foreseen in the Recovery Plan and whose need has been increased by the considerable increase in the risk of cyberattacks for geostrategic reasons, has as main objectives: to promote a comprehensive security of the 5G ecosystem; promote a sufficiently diversified market for 5G network and service providers; strengthen security in the installation and operation of 5G electronic communications networks, as well as the protection of national security; and strengthen the national industry in terms of cybersecurity related to 5G technology. Likewise, with this regulatory text, the entry into force quickly of those measures that allow prohibiting or limiting the activity in the market of suppliers that have been considered high risk is guaranteed.

In the preparation of this royal decree law, the "Toolbox" of the European Commission on the cybersecurity of 5G networks and the coordinated risk analysis of the Member States has been taken into account as a common basis for a secure development of 5G technology in Europe.

It is about developing a reliable environment for the deployment of 5G networks and services, which generates the necessary trust among users regarding their operation and protection against potential leaks or data manipulations, and establishing the measures with which to face the security risks to which the new 5G networks and services are exposed.

On 4 March 2022, the  Spanish Government approves draft law to protect people who report corruption.

The Council of Ministers approved the Draft Law that regulates the protection of persons who report on regulatory infractions and the fight against corruption in order to transpose Directive (EU) 2019/1937 of the European Parliament and of the Council, of October 23, 2019, on the protection of persons reporting breaches of European Union (EU) law.

On 11 March 2022, the S.I. 2022 No. 269 - The Economic Crime (Anti-Money Laundering) Levy Regulations 2022 was published in the UK legislation.

The principal policy objective behind this instrument is to establish processes associated with the levy in a timely manner and provide levy collectors and payers with clarity as to whom the levy should be paid (especially in the event that a person is jointly supervised by the FCA and the Gambling Commission), the steps payers of the levy will need to take, and how arrangements for payment of the levy will be established. 

This instrument effectively lays the groundwork for additional measures to be introduced later in the year to operationalise key levy processes. The instrument includes the dates by which payment must be made in the case of the Gambling Commission and HMRC. It is desirable to confirm these matters in relation to how the levy will operate a year before it is first due to be collected (from April 2023); such clarity was flagged by stakeholders as a priority during the consultation process.

On 31 March 2022, the Financial Conduct Authority (FCA) updated on Onshoring and the Temporary Transitional Power.

FCA’s use of the TTP has ended and firms must fully comply with UK onshored regulatory obligations. The TTP as laid out in Treasury legislation expires on 31 December 2022. However, in line with agreed timescales, the FCA stopped using the power on 31 March 2022, except in relation to the Share Trading Obligation (STO) and the Derivative Trading Obligation (DTO).

On 22 March 2022, the Financial Conduct Authority (FCA) published form for Corporate - Notification for Change in Controller (Section 178 notice).

This form should be completed by a director of a corporate entity that wishes to acquire control or to increase control in a firm or in a parent undertaking of the firm.

On 24 March 2022, the Financial Conduct Authority (FCA) published notice to all FCA regulated firms with exposure to cryptoassets.

The notice sets out some areas of risk that firms need to consider. This is not a complete list and firms should consider any further controls and requirements which apply to them. They should read this statement together with FCA’s latest guidance on how firms should manage financial crime risks associated with cryptoassets  in the ongoing Russia/Ukraine conflict:

• Being clear with customers: FCA expects firms to ensure that consumers understand the extent of business that is regulated and to clearly distinguish those elements which are unregulated business. At all times, firms remain responsible for identifying and managing potential risks related to cryptoassets.
• Financial Crime and registration of cryptoasset business: FCA expects all authorised and registered firms to have appropriate systems and controls to counter the risk of being misused for financial crime. Where firms’ clients and customers are using cryptoassets or offering related services, firms are given the flexibility to adapt their actions to the perceived risks. Firms should assess the risks posed by a customer whose wealth or funds derive from the sale of cryptoassets, or other cryptoasset related activities, using the same criteria that would be applied to other sources of wealth or funds.
• Prudential considerations: Firms subject to FCA’s new investment firm prudential regime (IFPR), have obligations (under MIFIDPRU 7) to assess and mitigate the potential for harm to clients, to the markets in which the firm operates and to itself, that could arise from all of their business. This applies whether or not that business consists of Markets in Financial Instruments Directive (MiFID) investment business, other regulated activity or is unregulated. It also applies irrespective of operating on an agency basis, principal basis, or in some other capacity. This therefore includes cryptoassets business, however firms conduct that business. 
• Custody considerations: The FCA’s Client Assets Sourcebook (CASS) provides detailed rules for firms to follow when holding regulated assets in custody, as part of their investment business. Where cryptoassets are specified investments (ie, security tokens), firms carrying out regulated activities involving custody of these assets are likely to be subject to the CASS regime. 

On 1 March 2022, the UK Government published outcome of its consultation for the regulation of non-transferable debt securities (mini bonds).

This is the government’s response to the consultation on the regulation of non-transferable debt securities (NTDS) which ran from 19 April 2021 to 21 July 2021. This document summarises stakeholder responses to the consultation and explains the government’s preferred approach after considering those views.

While the majority of responses to the consultation agreed that NTDS should be brought into regulation, a number of responses asked for a joined-up approach that treats non-transferable debt securities consistently with other types of securities. The government therefore intends to include NTDS (and non-transferable securities more generally) within the scope of the new public offerings regime that is being developed as part of the Prospectus Regime Review. This will ensure a joined up approach is taken to the regulation of securities and fulfil the recommendation to bring non-transferable securities into the scope of regulation.

On 30 March 2022, the S.I. 2022 No. 406 - The European Market Infrastructure Regulation (United States of America Regulated Market Equivalence) Regulations 2022 was published in the UK legislation.

These Regulations are made in exercise of the powers conferred by Articles 2a (2) and (4) of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties, and trade repositories (as it has effect in the UK) (“EMIR”) as amended by the relevant EU exit instrument, S.I. 2019/335.

Commission Implementing Decision (EU) 2016/1073 (“the retained 2016 decision”) (as it has effect in the UK) sets out in its Annex a list of US markets. The retained 2016 decision provides that the listed US markets shall be equivalent to UK regulated markets as defined in Article 2(1) (13A) of Regulation (EU) 600/2014 of 15 May 2014 on markets in financial instruments (as it has effect in the UK). The effect of this is that derivative contracts executed on the listed US markets do not fall within the definition of “OTC derivative” or “OTC derivative contract” given in Article 2(7) of EMIR.

Article 2a (1) of EMIR provides that where a third-country market is determined HM Treasury to comply with equivalent requirements and to be subject to effective supervision and enforcement, that third-country market shall be equivalent to a UK regulated market.

On 18 March 2022, the Bank of England (BoE) renewed the Statement of Commitment to the FX Global Code (‘Code’) based on the revised Code dated July 2021.

The Code sets out principles of good practice in the foreign exchange market. It was first published in 2017 and updated by the Global Foreign Exchange Committee (GFXC). By signing this Statement, the BoE attests that its internal processes are consistent with the principles of the Code. 

To continue to support the objective of the Code for a fair, transparent and robust FX market underpinned by high standards, the Bank strongly encourages all market participants, including its regular counterparties, to adhere and commit to the updated Code. 

On 16 March 2022, the Financial Conduct Authority (FCA) informed that the FCA will will consult on proposals with the aim of ensuring that any side pockets that are introduced, and the date on which the side pocket takes effect, treat existing, redeeming and subscribing investors fairly, and do not encourage speculative new investment at the expense of existing investors.

The use of side pockets by the authorised fund manager would be optional, based on acting in the best interests of each fund it manages. The side pocket proposals would be limited in scope to assets that are illiquid as a result of the Russia/Ukraine war. The precise scope would be determined as part of the consultation.

It is the authorised fund manager’s duty to ensure that assets are valued fairly and accurately, and that subscriptions and redemptions take place at a fair price.

Rule changes would be set out and subject to formal consultation. To progress such consultation at the necessary pace, we welcome early engagement with any market participants, consumer groups or investor representatives that have views or ideas on the subject.

On 1 March 2022, the UK Government publishes outcome of its consultation on UK Wholesale Markets Review.

The government is taking forward reforms to the UK’s financial services regulatory framework for capital markets. These aim to ensure that the UK’s regulatory regime for secondary markets is fair, outcomes-based and supports competitiveness, whilst maintaining the highest regulatory standards. They also take advantage of our newfound regulatory freedoms since leaving the EU.

The government received 78 responses to the consultation. This document summarises the responses to the issues set out in the consultation and explains the government’s approach after considering those views.

Proposed MIFID reforms, developed by HM Treasury alongside the UK regulators include

• Giving firms greater choice about where they can trade and allowing them to get the best price for investors.
• Removing a number of burdens for Systematic Internalisers- a group of businesses that a play a key role in financial markets.
• Delegating the fixed income and derivatives, and part of the pre-trade, transparency regimes to the Financial Conduct Authority, who are well equipped to ensure rules are applied proportionately
• Giving the FCA the tools it needs to help the industry develop a Consolidated Tape. This will combine market data from multiple areas, giving investors a clear source of information, while cutting costs and complexity for firms.
• Reducing the scope of the commodities position limits regime and delegating it to trading venues to ensure that market activity is not unnecessarily restricted, while ensuring that markets function efficiently.

On 4 March 2022, the Financial Conduct Authority (FCA) published CP22/4 - Quarterly Consultation Paper No. 35.

The FCA proposes:

• to make changes to chapters 2 and 13 of the Perimeter Guidance manual to clarify application of the MiFID II Ancillary Activities Test in the absence of overall market size data
• to amend the research and inducement rules for collective portfolio managers so they are subject to the same rules as investment managers 
• to make changes to reflect amendments the Treasury has made to the UK MiFID delegated regulation in places where it is copied out in the Glossary and COBS
• to amend LR 14 to reflect the original policy position for investment entities other than OEICs prior to the amendments introduced in January 2021
• to make changes to the approach to continuing professional development for retail investment advisers and pension transfer specialists
• to extend the MIFIDPRU TP 7.4R(2)(b) notification deadline.

On 14 March 2022, the Financial Conduct Authority (FCA) updated on the market share test under the ancillary activities exemption for commodity derivatives.

The MiFID II Article 2(1)(j) ancillary activities exemption enables firms trading in commodity derivatives, emission allowances and emission allowance derivatives to be exempt from authorisation as a MiFID investment firm if they fulfil certain criteria. As part of verifying that they fulfil these criteria, firms are currently required to perform the ‘market share test’ and the ‘main business test’ as set out in UK MiFID RTS 20.

The ‘market share test’ (under Article 2 RTS 20) requires the calculation of the aggregate notional value of all trades in commodity derivatives, emission allowances and emission allowance derivatives traded on, or outside, trading venues across the European Union (which included the UK at the time MiFID II was adopted). In the past, the European Securities and Markets Authority (ESMA) produced consolidated figures for trading across the EU. However, the EU MiFID regime in respect of the ancillary activities test changed in February 2022. The ‘market share test’ – also known as the ‘overall market test’ – has been removed.

The FCA will also not be publishing this data.

On 25 March 2022, the Financial Conduct Authority (FCA) published PS22/2 - PRIIPs - Final scope rules and amendments to Regulatory Technical Standards.

These new requirements are one of the first examples of the FCA confirming UK divergence from EU rules following Brexit. 

• Those that manufacture, advise on, or sell PRIIPs are required to produce and provide a Key Information Document (KID) about the product they are selling. FCA’s changes remove information about the performance of certain products which can be misleading for consumers and will help those buying without financial advice to rely on the KID to make more informed investment choices. 
• Firms will have until the 31 December 2022 to implement the changes, and the FCA provided more clarity on how the FCA expects firms to construct narrative descriptions of performance within KIDs.  

On 1 March 2022, the UK Government published outcome of its consultation for UK Prospectus Regime Review.

The Government has taken forward important reforms to the UK’s regime for the public issuance of securities and admission to trading on capital markets. These are set out in the Prospectus Regime Review Outcome, which was published on 1 March 2022. The Government will replace the regime currently contained in the UK Prospectus Regulation and will legislate to do so when parliamentary time allows.

On 2 March 2022, the S.I. 2022 No. 205 - The Russia (Sanctions) (EU Exit) (Amendment) (No. 5) Regulations 2022 was published in the UK legislation.

These Regulations are made under the Sanctions and Anti-Money Laundering Act 2018 (c. 13) to amend the Russia (Sanctions) (EU Exit) Regulations 2019 (S.I. 2019/855) (“the 2019 Regulations”). The Regulations add new financial sanctions to Part 3 (Finance) of the 2019 Regulations. The amendments insert a restriction on the provision of financial services for the purposes of foreign exchange reserve and asset management involving the Central Bank of the Russian Federation, the National Wealth Fund of the Russian Federation, the Ministry of Finance of the Russian Federation, or persons owned or controlled by, or acting on behalf of, or at the direction of, the same. The Regulations insert licensing grounds relating to these new provisions.

The Regulations state that a person must not provide financial services to persons where the financial services are for the purpose of foreign exchange reserve and asset management; and that person knows, or has reasonable cause to suspect, that the financial services are provided to:

a) the Central Bank of the Russian Federation, 

b) the National Wealth Fund of the Russian Federation, 

c) the Ministry of Finance of the Russian Federation,

d) a person owned and controlled directly or indirectly by a person mentioned in sub-paragraph (a) to (c), or

e) a person acting on behalf of or at the direction of a person mentioned in sub-paragraph (a) to (c). 

“Foreign exchange reserve and asset management” means activities relating to reserves or assets of these persons in respect of financial activities, including the following— 

(a) money market instruments (including cheques, bills and certificates of deposit), 

(b) foreign exchange, 

(c) derivative products (including futures and options), 

(d) exchange rate and interest rate instruments (including products such as swaps and forward rate agreements), 

(e) transferable securities, 

(f) other negotiable instruments and financial assets (including bullion), or

(g) special drawing rights.

On 8 March 2022, the S.I. 2022 No. 241 - The Russia (Sanctions) (EU Exit) (Amendment) (No. 6) Regulations 2022 was published in the UK legislation.

These Regulations are made under the Sanctions and Anti-Money Laundering Act 2018 (c. 13) to amend the Russia (Sanctions) (EU Exit) (Amendment) Regulations 2019 (S.I. 2019/855) (“the 2019 Regulations”). These Regulations provide for new aviation and trade sanctions measures in relation to Russia.

The Regulations prohibit Russian aircraft from overflying or landing in the United Kingdom. The Regulations also confer powers on the Secretary of State, air traffic control and airport operators to issue directions for the purpose of preventing Russian aircraft from entering the airspace over the United Kingdom or from landing in the United Kingdom, or requiring aircraft to leave the airspace over the United Kingdom. The Regulations also confer powers on the CAA to refuse, suspend or revoke permissions in respect of Russian aircraft. The registration of aircraft on the register kept by the CAA is prohibited where they are owned, operated or chartered by demise by a designated person.

An exception from the prohibitions on landing and overflight is provided for where failing to land would endanger the lives of persons on board or the safety of the aircraft. The Regulations make it a criminal offence to contravene any of the prohibitions or fail to comply with a direction in these Regulations.

The Regulations also amend the trade measures in the 2019 Regulations to add new categories of aviation and space goods and technology, based on items falling within chapter 88 of the Tariff of the United Kingdom. The existing prohibitions applying to restricted goods and restricted technology are extended to these goods and technology, as well as a new prohibition on insurance and reinsurance services. Existing exceptions in relation to aircraft and vessels, for emergencies in certain cases, for authorised conduct and for purposes of national security or prevention of serious crime are applied to the new prohibition.

On 11 March 2022, the Financial Conduct Authority (FCA) published joint statement from UK financial regulatory authorities on sanctions and the cryptoasset sector.

The UK financial regulatory authorities reiterate that all UK financial services firms, including the cryptoasset sector, are expected to play their part in ensuring that sanctions are complied with. Controls developed to identify customers and monitor their transactions under the Money Laundering Regulations 2017 can help with compliance, but firms will need to implement additional sanctions specific controls as appropriate. In particular, firms should consider:

• updating business-wide and customer risk assessments to account for changes in the nature and type of sanctions measures
• ensuring that customer onboarding and due diligence processes identify customers who make use of corporate vehicles to obscure ownership or source of funds
• ensuring that customers and their transactions are screened against relevant updated sanctions lists and that effective re-screening is in place to identify activity that may indicate sanctions breaches
• identifying activity that is not in line with the customer profile or is otherwise suspicious and ensuring that these are reported quickly to the nominated officer for timely consideration
• where blockchain analytics solutions are deployed, ensuring that compliance teams understand how these capabilities can be best used to identify transactions linked to higher risk wallet addresses
• engage with public-private partnerships and private-private partnerships to gather insights on the latest typologies and additional controls that might be relevant and share their own best practice examples.

Firms should also look for red flag indicators that suggest an increased risk of sanctions evasion. These may include, but are not limited to:

• a customer who is resident in or conducting transactions to or from a jurisdiction which is subject to sanctions, or which is on the UK’s High Risk Third Countries list for anti-money laundering and counter-terrorist financing purposes, or any jurisdiction you have identified as posing an increased risk of illicit financial activity
• transactions to or from a wallet address associated with a sanctioned entity, or a wallet address otherwise deemed to be high-risk, based on its transaction history or that of associated addresses, or other factors
• transactions involving a cryptoasset exchange or custodian wallet provider known to have poor customer due diligence procedures or which is otherwise deemed high-risk
• the use of tools designed to obfuscate the location of the customer (eg an IP address associated with a virtual private network or proxy) or the source of cryptoassets (eg mixers and tumblers)
• other red flag indicators that are normally associated with money laundering more broadly. In both situations, the aim of the illicit actor is to make an illegal transaction seem legitimate.

On 13 March 2022, the Financial Conduct Authority (FCA) published its response to UK Chancellor’s call to stop investing in Russia.

Many asset managers and pension providers have written down any Russian assets already held by the fund or scheme to zero, and some have announced that they are intending to divest themselves of such assets when it is practical to do so. Major index providers have taken steps to remove Russian securities from their equity and bond indices.

There are currently significant practical challenges in terms of disposing of Russian assets. When it is possible to sell such investments, firms should ensure that they meet requirements on entities that are subject to sanctions or connected to sanctioned entities.

On 24 March 2022, the Financial Conduct Authority (FCA) published what firms should consider regarding operational and cyber resilience following Russia’s invasion of Ukraine, including:

• take all appropriate steps to shore up firm’s controls, including raising staff awareness that may, for example, include re-running staff ethical phishing campaigns. 
• consider the implications of the continuing unrest and UK/US/EU sanctions and how that might impact upon the firm and firm’s third-party providers, and whether this could affect firm’s ability to deliver firm’s important business services. 
• ensure business continuity and incident management arrangements are up to date, ensuring that the firm can continue to function and meet regulatory obligations in the event of unforeseen disruption.
• be ready to report material operational incidents to the FCA in a timely way.
• be alert to the risk of false information being gathered or shared about the operations of a particular firm or the financial services sector, or about firm’s  staff. This could be, for example, information shared on social media.

On 30 March 2022, the U.S. Securities and Exchange Commission (SEC) announced its 2022 examination priorities, including several significant areas of focus and many perennial risk areas. The Division will focus on private funds, environmental, social and governance (ESG) investing, retail investor protections, information security and operational resiliency, emerging technologies, and crypto-assets. The Division publishes its examination priorities annually to provide insights into its risk-based approach, including the areas it believes present potential risks to investors and the integrity of the U.S. capital markets.

The following are a selection of the Division’s 2022 priorities:

• Private Funds 
• ESG 
• Retail Investors and Working Families 
• Information Security and Operational Resiliency 
• Emerging Technologies and Crypto-Assets 

The published priorities are not exhaustive and will not be the only areas the Division focuses on in its examinations, risk alerts, and outreach. While the priorities primarily drive the Division’s examinations, the scope of any examination is determined through a risk-based approach that includes analysis of a given entity’s history, operations, services, products offered, and other risk factors.

On 4 March 2022, Monaco published the Sovereign Ordinance n° 9.125 of February 25th , 2022 amending Sovereign Ordinance n° 2.318 of August 3rd , 2009 setting the conditions for application of Act n° 1.362 of August 3rd , 2009 on the fight against money laundering, terrorist financing and corruption, as amended in the Bulletin Officiel de la Principauté.

The following Amendments to Sovereign Order 2.318 have been made :

• Amendment of art. 1: definitions ;
• Amendment to art. 5: identification and verification of the identity of the legal entity client;
• Amendment to art. 12-1: written report on the results of the Special Examination (PE) of the context and purpose of atypical transactions and transactions involving a counterparty with links to a high-risk State or territory;
• Amendment of art. 13, 14: identification of Beneficial Owners (BE);
• Modification of art. 24: Politically Exposed Persons (PEP);
• Deletion of art. 33: transmission of a report on the procedures of internal control, communication and centralization of information intended for the prevention of money laundering, financing of terrorism and corruption, as the case may be, to the Public Prosecutor or to the President of the Bar Council;
• Amendment of art. 51: Contact Group for the fight against money laundering, the financing of terrorism and the proliferation of weapons of mass destruction and corruption;
• Amendment of articles 55, 56, 57, 58 and deletion of articles 56-1, 56-2: procedure before the Commission d'Examen des Rapports de Contrôle (CERC);
• Amendment of art. 64: fixing the amounts provided for in Act No. 1.362.

On 11 March 2022, Monaco published the Sovereign Ordinance n° 9.131 of March 4th , 2022 amending Sovereign Ordinance n° 1.285 of September 10th , 2007 implementing Act n° 1.339 of September 7th , 2007 relating to mutual funds and investment funds, as amended in the Bulletin Officiel de la Principauté.

In the first paragraph of Article 29 of the aforementioned Sovereign Order Nr 1.285 dated September 10th , 2007, as amended, the words "of financial instruments" are replaced by the words "of reference".

In paragraph 1°) of Article 31 of the aforementioned Sovereign Order Nr 1.285 dated September 10th , 2007, as amended, the words "market indicators" are replaced by the words "a reference index".

The Secretary of State, The Secretary of State for Justice, Director of Judicial Services and The Minister of State are responsible, each in his or her own area of responsibility, for the implementation of this Ordinance.

On 18 March 2022, Monaco published Ministerial Order 2022-122 of March 9, 2022 amending Ministerial Order 2016-353 of June 6, 2016 on the simplified prospectus of a mutual fund or an investment fund, as amended in the Bulletin Officiel de la Principauté.

The following Article 10 is inserted after Article 10 of the above-mentioned Ministerial Order No. 2016-353 of June 6, 2016, as amended:

"Article 10-1: Where a mutual fund or investment fund uses a benchmark index within the meaning of Article 1 of Law No. 1,522 of February 11, 2022, aforesaid, the additional information shall refer to the contingency plan adopted by the management company in the event that the benchmark index is substantially modified or ceases to be provided. Where the contingency plan contains a fallback clause, this is included in the additional information.

In the fifth indent of the paragraph entitled "Maximum fees, inclusive of tax" in the "Summary presentation" section of the presentation model of the simplified prospectus appended to the aforementioned Ministerial Order no. 2016-353 of June 6, 2016, as amended, the words "indicator used" are replaced by the words "reference index used".

The paragraph entitled "Benchmark indicator (if any)" in the "Additional information" section of the presentation model of the simplified prospectus appended to Ministerial Order 2016-353 of June 6, 2016, as amended, above, is amended as follows:

"Benchmark indicator (if applicable)

Define the indicator (composition, administrator(s), coupons/dividends, website where additional information can be obtained...).

In the case of a benchmark used to measure the performance of a fund in order to replicate its performance, to define the allocation of the portfolio's assets or to calculate a performance fee, refer to the contingency plan adopted by the management company and specify, if applicable, the fallback clause used.

On 22 March 2022, the Comissão de Valores Mobiliários (CVM) published six new Resolutions:

• Resolution 71:  Repeals CVM Resolution 665 and makes it mandatory for publicly-held companies to consolidate Technical Pronouncement CPC 15 (R1), which deals with business combinations.
• Resolution 72: Repeals CVM Resolution 594 and makes it mandatory for publicly-held companies to consolidate Technical Pronouncement CPC 25, which deals with provisions, contingent liabilities and contingent assets.
• Resolution 73: Repeals CVM Resolution 583 and makes it mandatory for publicly-held companies to consolidate Technical Pronouncement CPC 27, which deals with fixed assets.
• Resolution 74: Repeals CVM Resolution 596 and makes it mandatory for publicly-held companies to consolidate Technical Pronouncement CPC 29, which deals with biological assets and agricultural products.
• Resolution 75: Repeals CVM Resolution 647 and makes it mandatory for publicly-held companies to consolidate Technical Pronouncement CPC 37 (R1), which deals with the initial adoption of international accounting standards.
• Resolution 76: Repeals CVM Resolution 763 and makes it mandatory for publicly-held companies to consolidate Technical Pronouncement CPC 48, which deals with financial instruments.

On 4 March 2022, the Comissão de Valores Mobiliários (CVM) published Deliberation 879 on the extension of the effective date of Resolution 874.

The term will change from 7 March 2022 to 7 June 2022.

One of the reasons for the extension is due to the volume of company documents that need to be reviewed and validated by the CVM. In addition, the development of functionalities of certain systems depends on the formalization of rules with the Municipality, and the period initially foreseen would not meet the demand.

The temporary authorization and waivers provided for in CVM Resolution 874 will be valid until 6 June 2023.

On 4 March 2022, the Comissão de Valores Mobiliários (CVM) published Resolution 66 amending CVM Resolution No. 24 , of 5 March 2021.

The amendments provide the activities regarding the Controle e Apoio Jurídico – CAJ: 

I – the reception, registration and processing necessary for the receipt and dispatch of consultations,  legal manifestations and other expedients;

II – the preparation and organization of the material necessary for the participation of the Chief Prosecutor, or of whom he appoints, in meetings;

III – daily checking of electronic mailboxes and other control and processing systems of documents; and

IV – carry out other related activities.

On 4 March 2022, the Comissão de Valores Mobiliários (CVM) published Resolution 66 amending CVM Resolution No. 24 , of 5 March 2021.

The amendments provide the activities regarding the Controle e Apoio Jurídico – CAJ: 

I – the reception, registration and processing necessary for the receipt and dispatch of consultations,  legal manifestations and other expedients;

II – the preparation and organization of the material necessary for the participation of the Chief Prosecutor, or of whom he appoints, in meetings;

III – daily checking of electronic mailboxes and other control and processing systems of documents; and

IV – carry out other related activities.

On 11 March 2022, the Comissão de Valores Mobiliários (CVM) published Circular Letter CVM/SEP 2/2022 to inform publicly-held and foreign companies that the new version of the Empresas.NET System (17.0.0.2) will be available as of 28 March 2022.

The other versions of the Empresas.NET System will continue in force and, therefore, documents created by previous versions will be accepted (16 and 17.0.0.1).

On 15 March 2022, the Comissão de Valores Mobiliários (CVM) published a survey to outline the Brazilian Investor Profile.

The objective of this project is to better understand the profile of investors in Brazil and their experience in the capital market, in addition to their perceptions about the performance of the CVM. The survey also focuses on people who started investing from 2020 onwards, to understand the impacts of the pandemic on this decision.

his new phase of the survey aims to expand its reach and, although it is open to all investors, it has been updated to include a specific section for the new generation of investors in the capital market. From the perspectives of behavioral sciences, the research aims to map not only knowledge, but also attitudes, habits and behavioral biases, in addition to seeking to capture the experience that this investor has in the day-to-day of the market. A high degree of participation in the survey will be very important for the representativeness of the findings, which will inform educational programs and investor protection strategies.

On 25 March 2022, the Brazilian Financial and Capital Markets Association (ANBIMA) informed that the pilot phase of registration of administered wallets is extended until 14 April 2022.

The pilot has been assisting in the definition of the operational process for sending information to ANBIMA. Institutions of different sizes, volume and quantity of portfolios may voluntarily participate. All instructions for registration are in our statement in the SSM (information exchange platform between ANBIMA and the companies follow our codes). The data that the institutions report in the tests will not be used for supervisory purposes. Thus, by participating in the pilot the institution will have the opportunity to adapt its processes and systems before the effective entry into force of the rules for sending information from managed portfolios.

The release date of the official registration system for the entire market will be announced soon in the ANBIMA, still during the pilot phase.

On 30 March 2022, the Comissão de Valores Mobiliários (CVM) informed on the release of the Law No. 14317 on the modification of the method of calculating the Inspection Fee of securities markets.

Benefits for the capital market

• Fee reduction for service providers (individuals) of up to 79%, with emphasis on autonomous investment agents (AAIs) who are now called "investment advisors".
• Fee reduction for investment advisors (legal entity), providers of portfolio management services (legal entity) and securities advisors (legal entity) of up to 50%.
• Reduction of the tax burden for Public Companies, Investment Funds and other smaller players, stimulating the entry of new agents and increasing competition and efficiency in the capital market.
• Unification and reduction of the rate on offers of securities, which became 0.03% on the value of the offer, representing a reduction of up to 95% in the nominal rate of the fee.
• Update of the structure of the law with the inclusion of new categories of taxpayers that emerged with the evolution of the market.
• Reduced and differentiated taxation for market innovation agents, such as crowdfunding platforms and legal entities authorized to participate in the experimental regulatory environment (sandbox).
• Fee collection frequency changes from quarterly to annual, reducing transactional and operational costs for both regulated companies and the CVM.

New categories and greater equity

• Foreign companies
• Deal-leading intermediary
• INR representative
• Rating agencies (rating)
• Trustees
• Organized over-the-counter market entities
• Securities depository centers
• Other institutions operating market infrastructure
• Electronic collective investment platform
• Legal entity authorized to participate in the regulatory environment (sandbox).

On 4 March 2022, the Brazilian Financial and Capital Markets Association (ANBIMA) communicated on the exemption from the examination of the Certification of ANBIMA Managers for Structured Funds (CGE).

According to the rules and procedures for dispensing the exam, during the next six months (counted from March 2, 2022), professionals with experience of FIP management equal to or greater than seven years - accumulated in the last ten years in institutions participating or not participating in the Certification Code - can request exemption from the test and directly request their CGE certification.

After this period, experiences accumulated in participating institutions will no longer be accepted for the requests for exemption from the CGE test.

On 7 March 2022, the Comissão de Valores Mobiliários (CVM) informed on the extended research on informational regime of investment funds regulated by CVM Instruction 555, lasting until 10 March 2022.

On 9 March 2022, the Comissão de Valores Mobiliários (CVM) published Circular Letter CVM/SIN 01/22 on the Guidance for IF managers on compliance with redemption payment deadlines set out in the fund's regulations.

The objective is to explain the technical area's understanding of what must be computed in the operational processing of redemptions, within the maximum period of five business days, provided for in art. 37, III, of CVM Instruction 555.

The document clarifies that the “ payment” of the redemption as the moment of the effective placement of the financial resources at the shareholder's disposal . In addition, it informs that  the period elapsed between the liquidation of the redemption by the fund and the effective availability of the resources to the investor must be considered within five business days. 

On 22 March 2022, the Brazilian Financial and Capital Markets Association (ANBIMA) informed FIP (Equity Investment Funds) that the obligation to send the quarterly FIP information, provided for in Article 11 of the Rules and Procedures of the ART Code, is suspended until the means is made available for completion.

This suspension is due to the reformulation of the FIPs database, which is in progress in the Association.

On 29 March 2022, the Comissão de Valores Mobiliários (CVM) published Resolution 82 regarding the Investment Fund of the Service Time Guarantee Fund (Fundo de Investimento do Fundo de Garantia do Tempo de Serviço, FI-FGTS) and revokes CVM Instruction No. 462 of 26 November 2007.

The regulation provides for:

I – qualification of the administrator;

II – qualification of the custodian;

III – conditions and terms for application and redemption; 

IV – duration period;

V – investment policy, specifying the functions of the FGTS Board of Trustees and the Committee of Investments in the analysis and selection of FI–FGTS investments;

VI - definition of the maximum risk exposure of the fund's investments and the methods used by the administrator to manage them;

VII – existence and conditions of the guarantee referred to in art. 7, item IX, of Law No. 8,036, of 11 May 1990;

VIII - management fee, fixed and expressed as an annual percentage of shareholders' equity;

IX – result-based remuneration rate ( performance rate), if applicable;

X – other fund expenses;

XI – information disclosure policy to interested parties, including those related to the composition of wallet, which must be identical for everyone who requests it;

XII – policy regarding the exercise of the FI-FGTS voting right, by the administrator or by their legally constituted representatives, in general meetings of companies in which the fund has participation; and

XIII – information on the taxation applicable to the fund and its shareholders.

On 29 March 2022, the Comissão de Valores Mobiliários (CVM) published Resolution 80 regarding registration and information of securities issuers admitted to trading in regulated securities markets.

The trading of securities on regulated markets in Brazil depends on prior registration of the issuer with the CVM. The issuer may request registration with the CVM in one of the following categories:

I – category A: authorizes the trading of any securities of the issuer on regulated securities markets.

II - category B: authorizes the trading of the issuer's securities on regulated securities markets, except for the following securities:

• shares and share deposit certificates; or
• securities that grant the holder the right to acquire the securities, as a result of their conversion or the exercise of the rights inherent to them, provided that they are issued by the issuer of the securities or by a company belonging to the group of said issuer.

On 29 March 2022, the Comissão de Valores Mobiliários (CVM) published Resolution 77 on the trading of shares and the acquisition of debentures of its own issuance.

These provisions apply to trading:

I – shares issued by a publicly-held company by itself, by its affiliates and by its subsidiaries;

II – by the publicly-held company, by its affiliates and by its subsidiaries, of subscription bonuses and any other securities referenced to shares issued by it.

On 24 March 2022, the Banco Central do Brasil (BACEN) published Resolution CMN No 5008 on the constitution, organisation and operation of securities brokerage companies and securities distribution companies.

Securities brokerage companies and securities distribution companies have as their corporate object:

I - operate in an enclosure or in a system maintained by securities market management entities;

II - subscribe, alone or in consortium with other authorized companies, securities issues for resale;

III - intermediary public offer and distribution of securities in the market;

IV - to buy and sell securities on their own account and by third parties, under the regulation issued by the Brazilian Securities and Exchange Commission and the Central Bank of Brazil in their respective areas of competence;

V - to take care of the management of portfolios and custody of securities;

VI - to be responsible for the subscription, transfer and authentication of endorsements, unfolding of cautions, receipt and payment of redemptions, interest and other proceeds of securities;

VII - to perform fiduciary agent functions;

VIII - establish, organize and manage investment funds;

IX - to set up an investment company - foreign capital and manage its portfolio of securities;

X - perform the functions of agent issuing certificates and maintain services of book-entry actions;

XI - issue certificates of deposit of shares;

XII- intermediary exchange operations;

XIII - practice operations in the foreign exchange market;

XIV - practice margin account operations;

XV - carry out committed operations;

XVI - to carry out operations of purchase and sale of precious metals, in the physical market, on their own and by third parties, in accordance with the regulations issued by the Central Bank of Brazil;

XVII - operate on exchanges of goods and futures on their own and third-party account, in compliance with the regulations issued by the Brazilian Securities and Exchange Commission and the Central Bank of Brazil in the respective areas of competence;

XVIII - provide intermediation services and technical advice or assistance, in operations and activities in the financial and capital markets;

XIX - to lend securities members of the respective portfolios to their owners, exclusively in accordance with this Resolution and in the regulations of the Securities and Exchange Commission;

XX - issue electronic currency, in accordance with the regulations in force; and

XXI - to carry out other activities expressly authorized, jointly, by the Central Bank of Brazil and the Brazilian Securities and Exchange Commission, when they are of the same nature and risks of the activities mentioned in the preceding items.

On 22 March 2022, the Brazilian Financial and Capital Markets Association (ANBIMA) informed on new legal framework of securitization & its proposals.

Provisional Measure (MP) 1.103/2022, which deals with the new legal framework of securitization, incorporated much of the suggestions that ANBIMA forwarded throughout the preparation of the proposal under the IMK (Capital Market Initiative). Among the innovations of the text, published on 16 March, are the expansion of the possibility of issuing securitization certificates to other sectors besides real estate and agribusiness and increasing legal certainty for these structures.

On 29 March 2022, the Comissão de Valores Mobiliários (CVM) published Resolution 81 regarding meetings of shareholders, debenture holders and holders of promissory notes and commercial notes.

The information and documents provided to investors:

I – must be true, complete and consistent;

II – must be written in clear, objective and concise language; and

III – must not mislead the investor.

On 1 March 2022, Banco de la República published External Regulatory Circular DEFI-360 of March 1, 2022, Case 3: Transitory Liquidity Supports.

This circular replaces Sheets 3-1, 3-2, 3-3, 3-6, 3-7 of February 26, 2021, 3-8, 3-11, 3-22, 3-31 and 3-A10A-1 of September 16, 2021, 3-9, 3-10 of January 7, 2022, 3-12, 3-13, 3-14, 3-15, 3-20, 3-21, 3-23, 3-24, 3-25, 3-26, 3-27, 3-28, 3-29, 3-30, 3-A1A-1, 3-A1C-1 of 30 April 2021 and adding Sheet 3-32 of External Regulatory Circular DEFI-360 corresponding to Subject 3: "Transitory Liquidity Supports" of the Financial Stability Department Manual.

These amendments are made in order to adopt operational adjustments.

On March 2022, Banco de la República published External Regulatory Circular DOAM-148 of March 1, 2022, Case 10: Procedures of Operations to Regulate the Liquidity of the Economy.

This Circular replaces sheets 10-9 of 8 May 2020, 10-2, 10-3, 10-6, 10-12, 10-14 to 10-20 of 26 February 2021, 10-8, 10-10, 10-11 and 10-13 of 14 December 2021, and includes sheet 10-A7-1 of Subject 10: Procedures of Operations to Regulate the Liquidity of the Economy of External Regulatory Circular DOAM-148, of the Operations and Market Analysis Department Manual.

The amendments are made in order to:

• Include the characteristics of Non Delivery Forward operations for the purchase of TES.
• Include some modifications of an operational nature of the operations of transitory expansion and contraction through the auction mechanism, in accordance with what is implemented in the Auction system.
• Include additional conditions for the process of compliance at maturity of repo operations.

On 1 March 2022, Banco de la República published External Regulatory Circular DOIV-413 of 1 March 2022, Issue 36: Procedure for the Transitional Expansion Transitory Operation with Promissory Notes.

This circular replaces sheets: 36-2, 36-5, 36-6, 36-7, 36-11, 36-16, 36-17, 36-18 and 36-19, Annex 5, Annex 6 and Annex 6R, dated 26 February 2021 of External Regulatory Circular DOIV-413 corresponding to Issue 36: "Procedure for the Transitional Expansion Transitory Operation with Promissory Notes" of the Institutional Operations and Housing Department Manual.

The changes are made in order to: 

• clarify aspects related to: communications arising from REPO transactions with promissory notes, the specification of the applicable foreign currencies for promissory notes, the transmission of information for disbursement and the procedure for the return of promissory notes; 
• indicate the procedure for the collection of the REPO transaction with promissory notes and the collection of penalties; and; 
• make operational adjustments.

On 2 March 2022, the Banco de la República published  External Regulatory Circular DOAM-317 of March 1, 2022, Subject 19: Trading Systems and Foreign Exchange Trading Registration Systems.

This Circular amends sheets 19-1, 19-5 and 19-7 dated 30 October 2020 and sheet 19-4 dated 27 December 2021 of Subject 19: "TRADING SYSTEMS AND FOREIGN CURRENCY TRADING RECORDING SYSTEMS" of the Manual of the Operations and Market Analysis Department. The amendments are made in order to: 

i. To point out that the entities supervised by the Superintendencia Financiera de Colombia other than foreign exchange market intermediaries must register in a foreign exchange operations registration system the derivative operations carried out with Banco de la República, according to the provisions of External Resolution 4 of 2022.

ii. Establish that the systems of registration of foreign exchange transactions must accept the modifications to the conditions agreed in the spot transactions registered during the validity of these for reasons other than typing errors, except for those transactions that are part of the Representative Market Rate. 

These modifications are effective as of 1 April 2022.

On 17 March 2022, the International Swaps and Derivatives Association (ISDA) created a Russian Sanctions and Market Impacts InfoHub.

The page will be updated on a regular basis as relevant information becomes available globally and will serve as the central depository for information from ISDA relating to the impact of Russian sanctions on derivatives markets.

On 2 March 2022, the International Capital Market Association (ICMA) published its response to the ESMA call for evidence on a DLT pilot regime. 

ICMA has submitted its response to ESMA’s Call for Evidence on a DLT Pilot Regime. The call for evidence sought feedback from stakeholders on the need to amend the RTS on pre- and post-trade transparency and data reporting requirements in the context of the DLT Pilot. The response focuses on points most relevant to international debt capital markets and ICMA’s membership.