Irish Funds: A year of change

Partner Nick Blake-Knox, of Walkers' Irish office, outlines the recent events, trends and regulatory occurrences which fund managers are dealing with in 2018 and beyond.

In terms of trends we are seeing an increasing role for ESMA. This is particularly the case with supervisory convergence, which has been identified by ESMA as an area of strategic importance and has been included in its 2019 Work Programme which sets out its priorities and areas of focus for 2019. ESMA views supervisory convergence as a necessary step in achieving its overall mission to enhance investor protection and promote stable and orderly markets.

One of the key objectives of the supervisory convergence programme is to remove regulatory arbitrage and this is particularly relevant in the context of firms seeking to relocate as a result of Brexit. A Supervisory Coordination Network (SCN) has been established by Esma at which EU national competent authorities are afforded the opportunity to share and discuss details of Brexit related relocation applications that they have received in order to allow for the adoption of a common supervisory approach across member states. The SCN process has resulted in the expectations of certain NCAs, particularly those in relation to local substance, evolving over the course of the authorisation process, which in some cases can take more than 12 months to complete.

 

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Originally published by HFM Global