Five European regulatory issues to watch out for in 2017

pfm spoke to Mariana Enevoldsen and Kevin Smith, directors at Guernsey-based Heritage International Fund Managers, about the regulatory issues that will impact European investments in 2017.

Brexit negotiations aside, Europe’s regulatory calendar for the coming year is looking a little calmer than it did the same time last year. But there are some issues alternative fund managers with interests in Europe need to consider.

• The UK watchdog, the Financial Conduct Authority, is consulting on whether or not the structure of UK open-ended property investment funds needs to be reconsidered. It follows the suspension of trading of a number of UK open-ended property funds in the aftermath of the Brexit referendum result.

• Common Reporting Standards, which were developed by the Organisation of Economic Co-operation and Development and based on the USA Foreign Account Tax Compliance Act implementation agreements, will kick in across the EU.

• The review of the Alternative Investment Fund Managers’ Directive is due to start mid-year.

• The decision on when to issue third-country AIFMD passports to those that are deemed to qualify is likely to remain delayed as a result of the Brexit negotiations.

• A 12-month countdown to the entry into force of the second Markets in Financial Instruments Directive, and the Packaged Retail and Insurance-based Investment Products regulation begins on January 1.

Heritage is an independent provider of specialist insurance and financial services to global private clients. It has offices in Guernsey, London, Belfast and Malta, and a headcount of more than 150.