On 23 May, Solutions Atlantic released updated rules for Egypt and Romania.
Information pertaining to Egypt:
The EFSA announced new rules which will restrict investment in issued share capital or bonds convertible to shares (voting or non-voting) of securities companies licensed in Egypt.
Such investment will require pre-acquisition approval of any acquisition (directly or indirectly and either alone or through a related group) when the acquisition reaches or exceeds the following percentages of the company’s capital or voting rights: 10%, 25%, one third, 50%, two-thirds or 75%.
Information pertaining to Romania:
- TDA standard disclosure thresholds apply.
- Cash settled instruments need to be disclosed.
- Introduction of 5% trading book exemption.
- Indicative instruments may be disclosable if the conditions for disclosure are met.
Solutions Atlantic has released new forms to support new requirements by the UK and HK regimes.
United Kingdom – FCA
As reported in early April, the FCA announced its plans to adopt a new TR-1 form which is closer to the ESMA issued form. This new form will be effective on 30 June.
Click the link to see the announcement details (on page 7).
Hong Kong – SFC
As reported early this month, the SFC announced it will move to electronic disclosure filing and has issued a new form. This new form will be effective on 3 July.
Click the link for more details.
The EU issued net short position notification thresholds for sovereign issuers on 1 May, 2017.
According to Article 7(2) of the Short Selling Regulation, ESMA has to publish a list of the thresholds applicable to the sovereign issuers for the purpose of the notification to competent authorities of significant net short position in sovereign debt.
The way these notification thresholds are defined is further specified in the Commission Delegated Regulation No 918/2012 (the “DR”). The DR specifies that initial threshold categories shall be:
- 0.1% applicable where the total amount of outstanding issued sovereign debt is between 0 and 500 billion euros;
- 0.5% applicable where the total amount of outstanding issued sovereign debt is above 500 billion euros or where there is a liquid futures market for the particular sovereign debt.
The additional incremental levels shall be set at 50% of the initial thresholds. The reporting thresholds shall be monetary amounts fixed by applying the percentage thresholds to the outstanding sovereign debt of the sovereign issuer. They will be revised and updated quarterly to reflect changes in the total amount of outstanding sovereign debt of each sovereign issuer.
In addition, the DR states that the amount of outstanding debt should be calculated using a duration adjusted approach. ESMA has published a Q&A document on how to proceed for the duration adjustment.
The table of thresholds contains the name of the sovereign issuer, the amount of outstanding debt duration adjusted, the initial threshold amount and the relevant percentage, the incremental threshold amount and the relevant percentage.
Please note that the figures of the amount of outstanding debt are duration adjusted (not nominal amounts) and are approximations provided by competent authorities.
Provides Audit Services for Global Shareholding Disclosure Workflows
Seeing an ever-growing demand in regulatory changes within the global shareholding disclosure space, Solutions Atlantic today announced it will be providing audit services to help market participants identify gaps in their global shareholding disclosure process.
Since the first of the year, the industry has seen a wave of regulatory announcements ranging from the issuance of new disclosure forms, changes to voting rights, and the tightening of short selling regulations. Missing any one of these regulatory announcements could expose a firm to an enforcement action by regulators for non-compliance. Solutions Atlantic has been in the global shareholding reporting space for more than 15 years, and is recognized for its deep expertise. A number of buy-side firms have come to rely on Solutions Atlantic audits of their shareholding disclosure systems and processes.
“It’s evident by the number of calls coming in that compliance departments are having a real challenge ensuring that they are meeting their global shareholding disclosure obligations with the current systems and processes that they have in place,” said Mitchell Greess, CEO of Solutions Atlantic. “Regardless of whether you have a manual process or an automated solution, periodic reviews need to be done to give compliance a high level of confidence that they have not only applied the rules accurately but that they have not missed any updates to the rules along the way.”
Prior to this service, firms would turn to large consulting and professional services firms which in many circumstances require these firms to educate the consultant on the reporting requirement and or the system being used. With this service, that is no longer the case, firms can readily and affordably gain confidence in their systems and processes without the time-consuming learning curve or a huge budget. PDF Version
Trade compliance is a growing concern with regulators, to that end, Solutions Atlantic has introduced Pre-trade Decision Assistance to enable its clients to test trades before committing to them.
Once again, Solutions Atlantic is paving the way in the shareholding disclosure automation space with its newly released Pre-trade Decision Assistance (PDA) capability. The company today announced the release of PDA as part of its flagship product, the Regulatory Reporting System.
Global shareholding disclosure obligations continue to present real challenges to financial institutions that find themselves with little resources to manage the growing number of reporting requirements. Most recently the Amended Transparency Directive out of the European Union has caused considerable amount of reporting angst among market participants that have to manage the regulatory requirement at both the EU level and the individual country level. Most financial institutions would like to proactively manage their disclosures but limited resources and internal processes haven’t allowed that until now.
Having been a leader in the automation of shareholding disclosures since 2001, Solutions Atlantic in partnership with one of its New York based hedge fund clients, developed Pre-trade Decision Assistance capability to get ahead of disclosure obligations. PDA analyses proposed trades to determine their Shareholding Disclosure consequences.
“First in the market, first to enable users to develop and introduce their own rules, and first to deliver pre-trade decision support – revolutionizing the industry – it’s what our customers expect from us,” said Mitchell Greess, CEO of Solutions Atlantic. “I’m really proud of our team and really excited for our customers who want to utilize this great technology.”
Pre-trade Decision Assistance will enable firms to proactively manage disclosure obligations and in the case of hedge funds – keep their investments out of the public eye. Read more
The recent dramatic spike in the number and complexity of regulatory reporting guidelines, has left buy-side firms and administration companies worldwide scrambling to keep up with changes in order to minimize risk and avoid costly filing errors. Recent independent surveys show that one of the main challenges buy-side participants face today is adapting to new regulatory requirements. The Linedata 2016 Global Asset Management and Administration survey reports that 58% of participants cite regulatory compliance as a top challenge facing their firm. In a recent INDATA survey, clients named compliance as their top data management priority. Just this past February, the Securities and Futures Commission in Hong Kong censured a large investment bank for breaches of its Takeover Code.
According to Mitch Greess, CEO of Solutions Atlantic, a company that specializes in automating the workflow to accurately address global shareholding disclosure obligations in over 85 countries, the companies that will manage through this complex and rapidly evolving regulatory environment most successfully are the ones who can keep things simple, and focus on top priorities. Following are his Top 5 recommendations for navigating today’s rapidly evolving regulatory environment. Read more
Leading the way for shareholding disclosure automation for more than a decade, Solutions Atlantic today announced, that it has signed a multi-year deal with a large investment management firm with nearly $400B in AUM for its Regulatory Reporting System (RRS).
Shareholding disclosure obligations can present challenges for even the most informed and resourced compliance department. These challenges grow each time the firm invests in a new jurisdiction; for large institutions, monitoring the changing regulations, adapting manual processes and systems, and meeting regulatory deadlines can become overwhelming. At some point throwing additional resources at the problem just isn’t enough.
After conducting a thorough vendor analysis, the client chose RRS to effectively and reliably manage its shareholding disclosure obligations. The client cited Solutions Atlantic’s extensive expertise, market leadership and product stability as determining factors in their selection of RRS. “This is how we like to start the year off,” said Mitchell Greess, CEO of Solutions Atlantic. Read more
First introduced in November 2013, the Amended Transparency Directive (TDA) provided EU member countries two years to conform their regulations to those adopted by the EU Commission. With the deadline having come and gone, the TDA is in a confused state with only a handful of countries meeting the 26 November effective date and the remaining in various states of delay. Some countries have yet to put forward draft legislation.
You might think that the large economy countries are the ones that have complied and met the deadline but you would be mistaken. Several countries of considerable size and market stability have missed the deadline. Countries such as: Belgium, Netherlands and Sweden to name just a few have missed the deadline and may not comply until well into 2016. The whys and wherefores are as various as the 28 member states, but the effect is a nightmare for Compliance. Read more
Solutions Atlantic’s customers came together for its annual user conference to discuss reporting obligations under the awaited Amended Transparency Directive (TDA) and to get a glimpse of the much anticipated Regulatory Reporting System (RRS) user interface enhancements.
Solutions Atlantic invited Claire Farley, Head of Regulatory Products for aosphere LLP to speak to the many changes coming as a result of the amended Transparency Directive. Claire’s overview and roadmap for country compliance under the Directive sparked many questions and continues to do so as countries slowly meet the new requirements under the specific deadline. Read more
In keeping with the growing needs of its customers, Solutions Atlantic announced today that it has expanded the jurisdictions in its shareholding disclosure solution, the Regulatory Reporting System (‘RRS’), to include Ecuador, Lebanon and Panama.
The addition of these countries to the RRS Rules Library comes on the heels of the jurisdiction expansion announced by Derivative Services in Rulefinder. The expert team at Solutions Atlantic, licenses the regulatory intelligence found in Rulefinder to drive the shareholding disclosure rules they design in the RRS Rules Library. The Regulatory Reporting System is now approaching coverage for 90 jurisdictions. Read more