Asset Management

Asset Management update - May 2017

ESMA clarified traded on a traded venue under MIFID II

On 22 May 2017 the European Securities and Markets Authority (ESMA) issued an opinion regarding the implementation of the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR). The opinion clarifies the concept of “Traded On a Trading Venue” (TOTV), which is relevant for a number of provisions under MIFID II and MiFIR. The concept of TOTV is in particular relevant for:

  • pre-trade and post-trade transparency requirements on market operators and investment firms operating a trading venue as well as for investment firms (including systematic internalisers) operating over-the-counter (OTC); and
  • transaction reporting obligations.


Central Bank of Ireland publishes ETF discussion paper

On 15 May 2017 the Central Bank of Ireland publishing Discussion Paper 6 – Exchange Traded Funds. The Discussion Paper underpins an invitation to domestic and international stakeholders to help inform global and European discussions on Exchange Traded Funds (ETFs). The Discussion Paper comprises the following five areas:

  • ETF dealing;
  • distinctive ETF Risk Factors;
  • particular types and features of ETFs;
  • ETFs and market liquidity; and
  • other considerations.

Respondents are asked to provide their feedback to the Central Bank of Ireland by 11 August 2017.


Liquidating an Irish ICAV

The Members Voluntary Liquidation (MVL) for an Irish ICAV is a similar mechanism to liquidating an Irish company. MVLs can be undertaken when an Irish ICAVs useful life is over and the directors and shareholders decide to wind up (mainly for the purpose of realising its assets and distributing the surplus to its shareholders in accordance with their entitlements).


Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS)

The 30th June deadline for Foreign Account Tax Compliance Act (FATCA) and Common Reporting Standard (CRS) in respect of the year ended 31 December 2016 is fast approaching. This is the first deadline for CRS. The key difference between FATCA and CRS is that, whereas FATCA is primarily focussed on identifying US persons, the requirements of CRS require due diligence of nearly all of a financial institution's account holders and a greatly increased reporting burden. For financial institutions, the stages of the compliance process under CRS will be similar to FATCA. Financial institutions will need to:

  • identify certain types of customers and investors within the scope of CRS;
  • amend customer and investor take on procedures to ensure that the information gathered is sufficient to classify and verify the customer or investor under the regulations;
  • conduct due diligence on existing customers and investors to determine their classification under CRS and whether they are reportable; and
  • report annually to the relevant tax authority.

If you would like assistance with FATCA or CRS entity classification please contact Billy McMahon.