Esma: high risk of corrections, especially in private markets
Europe’s top financial supervisory authority is warning investors of a high risk of corrections in financial markets, especially in difficult-to-value private markets such as real estate.
SEC’s hefty fines contrast with Europe’s mild approach
The U.S. Securities and Exchange Commission (SEC) in 2023 continued to demand significant recoveries from financial institutions, although investment advisers were less frequently targeted. The year also witnessed the introduction of fines related to WhatsApp use and a record payout to whistleblowers.
CSSF ready to conditionally approve Eltif 2.0 applications
Luxembourg’s financial supervisor CSSF is ready to conditionally give its green light for new applications of Eltif 2.0 funds, even as the market still awaits a final adoption of the regulatory and technical standards, known as the RTS, by the European Commission.
Eltif 2.0 launch: Tension builds in Luxembourg
As the clock ticks down to the much-anticipated launch of the revamped EU regime for European Long-Term Investment Funds (Eltifs), the private markets world is abuzz with anticipation and a dash of uncertainty.
Luxembourg among most-expensive fund domiciles
Luxembourg last year remained among the most expensive domiciles for investment funds in Europe in all three investment categories, according to a research report released on Monday by the European Securities and Markets Authority, Esma.
Ireland joins supervisory drive on fund valuations
Ireland has joined Luxembourg on a supervisory drive to push the financial industry to improve their asset valuation processes for investment funds.
The Central Bank of Ireland has given fund managers in Dublin until the end of the second quarter next year to complete reviewing and upgrading where necessary their internal governance for fund valuations. A letter to the industry, published on Thursday, has defined four action points that need to be addressed at Board level.
ESG burnout looms for SEC due to political backlash
Political pressure is mounting on the Securities and Exchange Commission (SEC) over its efforts on climate reporting and Environmental, Social, and Governance (ESG). With the recent delay in final regulations, the question arises: Is the SEC bowing to pressure from critics?
CSSF on valuations: ‘We noted room for improvement’
Luxembourg’s financial markets authority CSSF has given fund management companies until the end of this year to review the way they determine the value of their investment funds. Investment Officer recently spoke to Marco Zwick, the CSSF director in charge of supervising investment funds. “We noted some room for improvement,” he said.
CRF tries to boost its financial investigation capacity
Luxembourg’s Financial Intelligence Unit is key to fulfilling Luxembourg’s international anti-money laundering/terrorist financing prevention obligations, reducing the perception that this country’s financial sector is somehow “above the rules”. Investment Officer recently had an opportunity to speak with FIU director Max Braun.
Esma warns on CLO ratings, sees conflict-of-interest risks
The European Securities and Markets Authority, Esma, on Thursday issued a warning about practices surrounding Collateralised Loan Obligations (CLOs) in the EU. The supervisory body has found potential conflicts of interest and undue influence in the CLO rating process during the 2017-2021 period.
The Big Three credit rating agencies - Fitch Ratings, Moody’s and S&P - are at the centre of this review.