What FinReg Has in Store for Q3 2020

July 06, 2020
  • Global Regulatory Team

We highlight what to expect this quarter and recap Q2’s key regulatory developments.

What could change the game in Q3:

  • Brexit. Despite taking a backseat to the news of the pandemic. Firms are urged to prepare for a no-deal Brexit in advance of the year-end deadline. We covered the latest developments here, but anticipate more updates on the horizon.
  • COVID-19: As more countries ease their lockdowns and asset management staff slowly make their way back to offices, there will also be an increased focus on whether regulators continue to extend certain temporary relief granted due to the impacts of the pandemic. 
  • ESG: As we enter the second half of 2020, there are just short of 9 months remaining until the implementation of the EU’s ESG Disclosure Regulation (March 10) which heralds mandatory website and investor documentation disclosures for asset managers of UCITS and AIFMD.  It also remains a hot industry debate in the US with recent comments from both the SEC to the Department of Labor. 

What happened in Q2: 

  • The effects of COVID-19 continued to play out in the industry:
    • Cybersecurity plans have become increasingly crucial for asset managers, as remote work environments make for vulnerability for hackers to exploit weaknesses or flaws in security precautions.
  • ETF issuers asked: what is an ETF? The latest ‘naming’ controversy popped up in the world of exchange-traded funds (ETFs). US issuers suggested a new naming regime, which distinctly separates different exchange-traded financial products by type.
  • AIFMD review placed EU passports at the forefront. The European Commission (EC) provided a roadmap about how it intends to revamp the Alternative Investment Fund Management Directive (AIFMD).
  • SEC looked to revamp its fair valuation rules. The SEC voted to propose a new rule under the ‘40 Act to establish an updated framework for fund valuation practices with a focus on fair value.

Top On The Regs Posts of Q2:

  • ESMA’s Output Unaffected By Remote Work: Read more
  • COVID-19: Regulators and Funds Swing into Action | Read more
  • MiFID II: Fragmented EU Distribution Rules Bubble Up Again | Read more


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