What FinReg has in Store for Q4 2020

We highlight what to expect this quarter and recap Q3’s key regulatory developments.

What could change the game in Q4:

  • US Presidential Election: The US electorate go to the polls on November 3rd. In any given year, the US presidential election is important to investment markets, but given the fractious nature of the campaign debates married to the continued effects of COVID-19 pandemic, uncertainty and volatility is likely to remain high for the remainder of 2020.
  • Brexit: No more delays, transitions or revisions. The Brexit transition period will expire on December 31. With recent political relations between the UK and EU souring in the aftermath of the UK government’s approval of the UK Internal Market Bill, it is increasingly looking like it will be a No Deal Brexit. With much uncertainty still, the central question remains for all cross-border asset managers, Are You Ready?
  • COVID-19: 2020 has been a year defined by the continued pandemic, it has caused regulators too to react and provide some relief, scale back plans in certain areas, and intensify focus in others, but not everything has been put on hold. Regulations such as the Shareholder Rights Directive 2, the EU’s Sustainable Finance Disclosure Regulation, the UK’s Senior Manager and Certification Regime (SM&CR), and the LIBOR transition all must be addressed and plans advanced, even in the midst of a global pandemic, regulatory change and obligations surge relentlessly on.

What happened in Q3: 

  • Irish Government Approves Investment Limited Partnership Bill (ILP): By approving the Irish ILP Bill, many hope that Ireland will soon be welcoming many more global private equity, private debt, and real estate funds. Read more here.
  • Europe’s ESG Agenda Rolls Relentlessly on: The growing trend of deeper integration of sustainability and environmental, social, and governance (ESG) became increasingly prominent in Europe during Q3. Europe has committed to reaching net zero carbon emissions by 2050. The EU’s goal for ESG started kicking into full gear in Q3; we outlined the next phases of the timeline here.  The theme of ESG permeates the entirety of global asset management currently including the private market space and industry conferences such as SIBOS, the largest banking conference in the world.
  • SEC Prepares for the “New Normal”: Fund managers working from home faced new challenges as the US Postal Service experienced delays in processing and delivering mail. The new remote working environment has compelled the SEC to look at a number of specific areas of concern in their supervisory program.

Top On The Regs Posts of Q3:

  • ESMA Letter: AIFMD Revisions just the Tip of the Iceberg | Read more
  • Private Markets Can Drive Towards a Sustainable Future | Read more
  • Céad Mile Fáilte – Irish Government Approves Investment Limited Partnership Bill | Read more

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