Regulatory round-up | Spring 2017

Ireland: beneficial owner regulation published

A new regulation published in Ireland in November 2016 transposes Article 30(1) of MLD4 into law and requires Irish companies to take all reasonable steps to identify their UBOs and place this information on a register. 

A UBO is an individual who, directly or indirectly, holds at least 25% of the capital or voting rights or otherwise retain control. The regulation took immediate effect.

Ireland: CP86 – new rules for fund managers

The Central Bank of Ireland finalised its CP86 project in December 2016. 

The objective of CP86 was to introduce initiatives “designed to underpin the achievement of substantive control by fund management companies, acting on behalf of investment funds, over the activities of their delegates.” 

The measures apply to Irish authorised fund management companies, capturing UCITS companies and AIFMs. The rules have implications for the governance, delegate oversight and other operational practices of fund management companies.

Netherlands: revision of Financial Markets Supervision Act

The Dutch Ministry of Finance is consulting on a redraft of the country’s Financial Markets Supervision Act. 

The purpose of the Consultation Document is to investigate whether, and if so how, it is possible to make the rules and regulations for the financial markets more accessible and future-proof: for example, by simplifying the law and making it more user-friendly. 

Interested parties have until 1 March 2017 to comment on the consultation.

Cayman: consultation on beneficial owner platform 

A public consultation period on new UBO legislation commenced in the Cayman Islands on 16 December 2016 with comments on the draft bills due by 5 January 2017. 

If approved in the Legislative Assembly, the bills will require the creation of a centralised platform of UBO information in the Cayman Islands by 30 June 2017. 

The consultation proposes an increase in the previously defined UBO threshold from 10% to 25%.

Cayman: AIFMD consistent regimes published

The AIFMD Consistent Regimes were published on 16 December 2016 in order to create a Cayman Islands regulatory regime which is consistent with the standards of regulation under the Alternative Investment Fund Manager Directive. 

These AIFMD Consistent Regimes will be of particular interest to managers and funds looking to access European investors, whether using existing national private placement regimes or looking to keep open the option of using an AIFMD passport at some point in the future.

US: Amendments to Investment Advisers Act rules adopted by SEC

Amendments adopted by the US Securities and Exchange Commission (SEC) to several Investment Advisers Act rules, including changes to Form ADV and Rule 204-2 became effective on 1 October 2016. 

Amendments to Form ADV include, inter alia, requiring advisers to provide additional information regarding their separately managed account business; requiring additional identification and affiliation information; and allowing for umbrella registration for certain advisers to private funds.

Canada: FINTRAC releases guidance on PEPs and HIOs

On 20 December 2016, FINTRAC released new guidelines in respect of Politically Exposed Persons (PEPs) and Heads of International Organisations (HIOs). 

The purpose of the Guidelines is to assist reporting entities in better understanding their obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. The Guidelines will be effective from 17 June 2017. 

8th March 2017

Our contacts

Ian McCarthy

Ian McCarthy

Senior Compliance Manager, Group Compliance

T+353 (0) 1 636 7100
Eiamccarthy@citco.com
LDublin