European Union – ESMA Publishes Updated Q&As for AIFMD and UCITS

The European Securities and Markets Authority (ESMA) has published updated questions and answers documents (Q&A) on the application of the Alternative Investment Fund Managers Directive (AIFMD) and the Undertakings for the Collective Investment in Transferable Securities Directive (UCITS).

The AIFMD Q&As include three new questions and answers on:

  • Reporting to National Competent Authorities (NCAs) on the breakdown between retail and professional investors;
  • Notification of AIFMs on the AIFs to be managed, if domiciled in another Member State; and
  • Use by an AIF of the exemption for intragroup transactions under Article 4(2) of Regulation (EU) 648/2012 (EMIR), if subject to the clearing obligation of Article 4(1) of EMIR.

AIFMD Q&A

The UCITS Q&As include one new question and answer on:

  • Application to UCITS of the exemption for intragroup transactions under Article 4(2) of Regulation (EU) 648/2012 (EMIR), if subject to the clearing obligation of Article 4(1) of EMIR.

UCITS Q&A

The purpose of these Q&A documents is to promote common supervisory approaches and practices of both the AIFMD and the UCITS Directive and their implementing measures.

RRS Updates Rules for Egypt and Romania

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.