Regulatory round-up | Autumn 2016

Our list of the latest advice, rulings and technical standards from regulators across the globe

EU data protection regulation published

The new EU data protection framework, the General Data Protection Regulation (GDPR), was published in the EU Official Journal on 4 May 2016 and will apply from 25 May 2018.

The GDPR will replace the current directive, which dates back to 1995.

It will have extra-territorial effect and includes provisions such as a ‘right to be forgotten’, mandatory breach reporting and a new sanctions regime.

Cybersecurity directive comes into force

The directive on security of network and information systems (NISD) was published in the EU Official Journal on 6 July 2016.

The aim of the directive is to bring cybersecurity capabilities to the same level of development in all EU Member States.

The NISD entered into force on 8 August 2016 and needs to be transposed by 9 May 2018.

AIFMD: third country assessments issued

On 19 July 2016, ESMA issued unqualified positive assessments of Guernsey, Japan, Jersey, Canada and Switzerland as third-country candidates for the AIFMD passport extension.

Qualified positive assessments were afforded to Australia, Hong Kong, Singapore and the USA. Definitive recommendations could not be made by ESMA regarding Bermuda, Cayman Islands and the Isle of Man.

AIFMD/UCITS: call for evidence on custody

On 21 June ESMA published a call for evidence on asset segregation and custody services under AIFMD and UCITS.

ESMA is gathering views on any asset segregation regime which ensures assets are clearly identifiable as belonging to the AIF or UCITS, and which protects investors in the event of insolvency.

The deadline for submissions to the call for evidence is 23 September.

Money laundering directive amended

On 6 July the EU Commission adopted a proposal to amend the Fourth Money Laundering Directive (MLD4).

The proposed amendments aim to reinforce existing rules on anti-money laundering to counter terrorist financing and increase transparency about the ownership of companies and trusts.

The Commission reiterated its request that member states commit to bring forward the planned mid-2017 implementation to the end of 2016.

Cayman Islands brings forward protection for whistle-blowers

On 15 July the Confidential Information Disclosure Law 2016 came into force in the Cayman Islands with the repeal of the Confidential Relationships (Preservation) Law (2015 Revision).

The 2016 law modernises the Cayman Islands’ approach to confidential information, decriminalising the disclosure of confidential information and introducing a “whistle-blower” defence in certain circumstances.

Netherlands consults on trust offices act

On 2 May the Dutch Minister of Finance published for consultation a draft act on the Supervision of Trust Offices 2018 (Wet toezicht trustkantoren 2018).

This draft version of this act will replace the current act on the supervision of trust offices and is expected to come into force in 2018.

The consultation period ended on 30 May.

Irish investor money regulations take effect

The Central Bank of Ireland’s Investor Money Regulations

(IMR) took effect in Ireland on 1 July.

The IMR applies to subscriptions received before they pass to a fund, redemptions after they have been paid out of a fund and dividends which have left a fund but have not yet been paid to investors.

Detailed IMR guidance has been published by the Central Bank of Ireland.

9th September 2016