EU-UK equivalence now in doubt
As Angela Merkel advises Europe to prepare for a No deal Brexit so the EU and UK have failed to meet a key deadline to enable third country equivalence to happen. It had long been assumed that there would be an EU-UK equivalence agreement on financial services.
What about AIFMD II?
The Commission is expected to publish a consultation paper on proposed changes to AIFMD shortly, and then have a public hearing. But it’s unlikely anything will be decided before mid-2021. Brexit has made AIFMD II much more difficult.
Merge to preserve
The DMS, MDO and MontLake merger is the latest M&A deal in the consolidating ManCo hosting business. As well as a lot of M&A activity many third party ManCo have seen a remarkable level of senior management turnover recently.
No liquidity crisis yet
The pandemic hasn’t caused a fund liquidity crisis. Still, Fitch reports that global mutual funds with $62 bn in assets have suspended redemptions so far this year. On September 30 ESMA’s new guidelines on liquidity stress testing coming into effect.
Covid-19: taxulation collaboration?
With likely long-term travel difficulties unprecedented levels of collaboration between regulators and tax authorities are needed for the peripatetic EU fund industry to function effectively - both by jurisdiction and by ESMA with the OECD on BEPS.