Regulatory update
25 July 2024
‘Data is the core to painting the picture’
To harness sustainability-linked loans and improve the top and bottom lines of portfolio companies, GPs need to solve the data challenge
24 July 2024
A third of private market firms leave compliance to last minute
New research from CSC which looks at SPV in private markets sees 69% of senior professionals citing economic substance regulations as top challenge
18 July 2024
5 minutes with… Philipp Neidel and Joachim Mogck, partners at Orbit
Neidel (right) and Mogck (left) launched their boutique law firm to specifically focus on advising the product ‘fund’ and deploy technology to improve and accelerate services
3 July 2024
HSF launches ESG tracker
Law firm aims to empower through information and provide an early warning system
24 June 2024
Leverage limitations on private credit funds
AIFMD II introduces new rules for loan origination funds and firms will have to make a choice
30 May 2024
Snoop dog: Who watches the regulators?
The Drawdown evaluates different proposals to regulate the FCA and PRA
16 May 2024
Putting the ‘private’ back into take-privates
Decision by UK Takeover Panel helps private equity firms by removing the obligation on public companies to disclose bidders
14 May 2024
ESMA publishes ESG fund name guidelines
The report states at least 80% of investments within a fund must satisfy sustainable investment criteria to use related terminology
9 May 2024
FCA gets ready to scrub
Financial watchdog’s anti-greenwashing rule is effective from 31 May 2024; The Drawdown checks it to make sure PE ticks all boxes
6 May 2024
Column: Govern-ready AI
Dörte Höppner, chief sustainability officer at the Riverside Company, on AI governance in PE
2 May 2024
The FTC’s non-compete ban and its consequences
If you or your loved ones have been incentivised to remain at your current employer, you may be entitled to compensation
18 April 2024
HNWI hurdling
The UK may have reversed its changes to the HNWI regime but the conversation seems far from over
11 April 2024
FCA proposes permanent bundling of research payments
The consultation aims to make concrete the potential to pay for investment research and trade execution simultaneously, diverging from the EU’s MiFID II legislative framework
8 April 2024
‘This is where things have substantially changed’
The Drawdown catches up with Jonathan Blake, the inventor of the LP model and the rules on VC trusts, to discuss fund trends, retailisation and regulation
2 April 2024
BoE takes closer look at PE valuations
The Financial Policy Committee calls for more transparency in private market asset pricing amid continuing macroeconomic challenges
27 March 2024
Comment: Parental advisory
Barry Fishley, partner at Weil, Gotshal & Manges provides, an update for PE firms on data privacy enforcement in the UK
12 March 2024
European Commission rejects ESMA’s ELTIF 2.0 draft RTS
Liquidity mechanisms have been revised to make it easier to set up evergreen funds and to better attract individual investors to private markets, but the proposals still divide the investment community
12 March 2024
Comment: This far, but no further
Charlie Chipchase, managing director and head of Europe at Petra Funds Group, assesses whether the SEC’s long-awaited Climate Disclosure Rule goes too far or not far enough
7 March 2024
FCA increases AML oversight
Recipients of the regulator’s recent Dear CEO letter have six months to perform a gap analysis
29 February 2024
FCA consults on open investigations
The UK regulator expects to publish more information on ongoing investigations, whether or not any breaches have been made
29 February 2024
Tyrannosaurus Regs?
How are global regulators scrutinising AML procedures and is that oversight increasing?
15 February 2024
Seven out of 10 fund managers received AML fines in last two years
Ocorian’s latest survey finds alternative investment firms concerned about increasing AML risks
5 February 2024
Sweet sorrow
The alluring attraction of semi-liquid strategies brings with it a cautionary tale of liquidity (mis)management
30 January 2024
Financial Policy Committee outlines systemic risks in private credit
More regulatory scrutiny is expected to be placed on valuations, risk management, liquidity and leverage mechanisms to monitor systemic risks in private credit
19 January 2024
ESAs publish DORA draft RTS
Subject to approval by the European Commission, the technical standards outline the framework for good governance of ICT critical third parties
15 January 2024
What the AI?!... Ropes & Gray
Partner Rohan Massey and counsel Edward Machin at Ropes & Gray discuss how AI regulation might develop, along with key legal considerations for fund managers contemplating the technology’s adoption
9 January 2024
ALFI appoints new DG
Serge Weyland joins from Edmond de Rothschild and replaces Camille Thommes who held the position for 17 years
8 January 2024
Dear Irish AIFMs…
After the Central Bank of Ireland’s review of asset valuation processes, Irish AIFMs must make sure their governance models are up to scratch before the end of Q2 2024
4 January 2024
UK regulators consult on the operational resilience of critical third parties
FCA, PRA and Bank of England welcome feedback on the proposed framework deeming certain third-party organisations as ‘critical’, to reduce any associated systemic risks to the financial services industry
21 December 2023
Efama argues for sustainable product categories
Call comes in wake of publication of the UK’s SDR and as SFDR consultation is underway
20 December 2023
The ELTIF on the shelf
ESMA’s final draft ELTIF Regulatory Technical Standards have been released, subject to the European Commission's approval
19 December 2023
Voluntary ESG ratings code of conduct launches
ICMA and IRSG have launched the code to increase transparency in the services of ESG data providers
11 December 2023
The UK’s nice green labelling machine
Response to FCA’s SDR positive as regulatory arbitrage remains around applicability to overseas funds, portfolio management and practice of its highly anticipated anti-greenwashing rule
7 December 2023
Comment: Appeals to better nature
William Yonge, a partner at Morgan, Lewis & Bockius, analyses the recommendations of the Taskforce on Nature-related Financial Disclosures and how GPs can respond
7 December 2023
BoE to assess risks of AI in financial services
The bank has plans to review what it sees as systemic threats the technology poses to the financial industry
6 December 2023
ESAs add granularity to RTS
The draft technical standards have some suggested amendments, improving the detail of the disclosures made
1 December 2023
ESG, retail investors and you
The latest Efama conference brought together regulators and asset managers who championed the idea for product instead of fund labels and brainstormed ideas for retailisation
29 November 2023
SDR policy launched
The FCA is introducing an anti-greenwashing rule, four product labels and marketing requirements for investment funds
23 November 2023
Budget breakdown
The Drawdown watched the UK's Autumn Statement so you didn’t have to
22 November 2023
Cayman Islands removed from FATF’s grey list
Effective prosecution of financial crimes was key element to de-list but domicile stays on EU’s AML blacklist
20 November 2023
There and back again
Matthias Plötz reports on the success or otherwise of German GPs´ Luxembourg holidays
16 November 2023
Column: A contribution ill defined
The advantages of greater volumes of UK pension money being allocated to alternatives are obvious, says Zetland Capital partner Malcolm Goddard, if an attitude of inertia can be overcome
14 November 2023
AIFM-Done
As the EU concludes technical discussions around the AIFMD review, The Drawdown takes stock
13 November 2023
ESMA prioritises cyber risks
Digital resilience, including cybersecurity risk management, will be a key priority for the Authority
1 November 2023
CMA publishes Green Agreements Guidance
GPs and LPs are unlikely to infringe upon UK competition law for pursuing environmental sustainability agreements
1 November 2023
FCA joins Project Guardian
The regulator has joined the policymaker group to assess the use cases of asset tokenisation
30 October 2023
BoE’s Financial Policy Committee promotes operational resilience around cybersecurity
Elisabeth Stheeman, external member of the FPC, outlines key risk factors for the finance industry
23 October 2023
Kirkland launches SideTrack
Proprietary software to assist with side letter management, specifically most favoured nations clauses
23 October 2023
weather eye
Matthias Plötz asks: Will the distant winds of the SEC's Private Funds Rules force changes to European GPs' playbooks
23 October 2023
Rubbish in, rubbish out?
The latest SFDR consultation gets the industry thinking about improving entity-level disclosures
20 October 2023
European Parliament rejects ESRS objection
MEPs call for private sector to contribute to corporate sustainability transparency
19 October 2023
FCA lays out priorities for asset management regime
Regulator´s chair discusses AIFMD´s future in UK regulatory regime and highlights proportionality as guiding principle
13 October 2023
Comment: Beware non-EU entities bearing gifts
Dechert partners Michael Okkonen and Clemens York examine the impact of the Foreign Subsidies Regulation on private equity transactions
9 October 2023
Waystone finalises LFS deal
LFS’s UK ACD, Irish ManCo, fund administration and TA businesses will be incorporated into Waystone as all contractual conditions have finally been satisfied
4 October 2023
DORA the implementer
Following ESA’s public consultation, The Drawdown takes a closer look at the impending regulatory technical standards
28 September 2023
FCA cracks down on private market valuations
The review is expected to scrutinise valuation processes, governance and professionals in charge of the process
26 September 2023
FCA and PRA propose D&I reporting measures
The consultation papers aim to introduce frameworks to measure D&I objectives
21 September 2023
EU to sharpen ban on greenwashing
Predominantly aimed at consumers, some rules of new directive could target funds’ marketing communications
21 September 2023
Comment: Ensuring insurers and pension funds invest in PE
Eric de Montgolfier, CEO of Invest Europe, says amendments voted on in July offer a unique opportunity to address the shortcomings of Solvency II
15 September 2023
European Commission opens SFDR consultation
Regulator aims to address shortcomings of legal certainty, usability and potential to counter greenwashing
6 September 2023
EFAMA calls for more transparency in ESG ratings framework
The organisation says the European Commission must bring ESG data providers within the regulatory perimeter
4 September 2023
Gimme a break
Germany to exempt private equity funds from VAT as part of a broader finance reform package
24 August 2023
What’s in a name?
European Commission’s Retail Investment Strategy to further amend AIFMD and do away with ‘undue costs’, broaden definition of professional investor and ban inducements
15 August 2023
The great rebundling
UK signals plans to reinstate research payment bundling, diverging from MiFID II
11 August 2023
FCA eyes funds’ fees
Financial watchdog sees improvements in funds’ value assessment processes but there is still a ways to go
10 August 2023
CIMA updates private funds governance
Statement of Guidance addresses oversight of funds, relationships with service providers, documentation and communication thereof.
7 August 2023
Comment: Avoiding the tripwires
Pinsent Masons partner Mark Shaw details how to avoid regulatory issues when distributing non-EU funds within the EU
4 August 2023
Provisional agreement reached on AIFMD reforms
Regulators hone in on liquidity management, loan origination funds and delegation rules and hope to increase investor protection and cooperation of national authorities
1 August 2023
EFRAG to develop sustainability reporting standards
Association to establish voluntary sustainability reporting standards for SMEs outside of the CSRD’s scope
31 July 2023
Guernsey updates compliance audit requirement
GPs are now required to appoint an independent audit role
27 July 2023
‘GPs are becoming more creative’
Following his move from Travers Smith to Dechert, we caught up with fund formation veteran Sam Kay to get his take on the current market
24 July 2023
Regulators continue to woo retail investors in PE
As France proposes to remove further ELTIF restrictions, the FCA issues a policy statement opening up LTAF to retail and DC pensions schemes investors
17 July 2023
Luxembourg toolbox updated
A bill has been passed to increase flexibility and clarify certain ambiguities for AIFMs and their investment fund products
11 July 2023
Unpacking the EU Commission’s sustainable finance package
Concerns about complexity remain as bloc aligns legislation on sustainable investments and looks to regulate ESG ratings providers
10 July 2023
FCA cracks down on liquidity management
Financial watchdog’s review finds governance failures around decision making, stress testing and redemption practices
6 July 2023
Raising the (global) standard
What impact are the ISSB’s disclosure standards expected to have on global sustainability reporting requirements?
4 July 2023
ESMA reviews cross-border marketing requirements
The body’s second report highlights frequent breaches of marketing requirements
3 July 2023
The French (ELTIF) revolution
Country further opens the door to individual investors’ capital in the private markets but operational concerns remain
3 July 2023
AIFMD reforms delayed
Change in presidency of Council of the European Union leaves little indication for new timeline
22 June 2023
Comment: Preparing for regulatory changes in 2023
Ros Clark, regulatory risk assistant director, NatWest Trustee & Depositary Services details the upcoming regulatory changes financial services firms need to prepare for in 2023.
14 June 2023
European Commission updates sustainable finance framework
The Commission has proposed the requirement to regulate ESG ratings providers under ESMA
8 June 2023
The Drawdown Awards 2023: Winners announced
Congratulations to all of the winners of The Drawdown Awards 2023
24 May 2023
ESMA issues opinion on ‘undue costs’
Regulatory authority is concerned about diverging levels of investor protection across the bloc
23 May 2023
ESMA calls for input on ELTIF regime
Regulator is taking a closer look at redemption policy and matching mechanism
19 May 2023
Blackrock to launch LTAF
The FCA has granted Blackrock approval to launch fourth LTAF on the market
15 May 2023
In-house rules: legal versus compliance
As more lawyers move into in-house roles within private equity, they can take up the mantle of either legal or compliance – but how do these functions cross and diverge?
10 May 2023
Help your LP help you
As regulatory and economic perspectives on capital allocation diverge, LPs’ expectations towards their GPs are changing
3 May 2023
Who watches the watchdogs?
Macfarlanes calls for new independent body to increase democratic accountability and expertise of the UK’s financial services regulator
3 May 2023
Jersey widens AML/CFT scope
Jersey private entities with a local administrator no longer exempt from regime
2 May 2023
Up close and personal
FCA and HM Treasury take a deep dive into the effectiveness of SMCR so far; we explore what’s included in the consultation papers and what might be up for reform
24 April 2023
Not on the guestlist
A connection to public entities could see the EU's new Foreign Subsidies Regulation crash the dealmaking party
20 April 2023
Waystone acquires Link Fund Solutions
The deal is dependant on LFS settling with the FCA
17 April 2023
Critical about clouds
The UK's bill on operational resilience could empower GPs vis-à-vis cloud service providers, but concerns about regulatory fragmentation leave a bitter aftertaste
13 April 2023
The neverending SFDR story
EU’s supervisory authorities look to broaden SFDR disclosure requirements
5 April 2023
Invest Europe voices concern over FSR
The EU’s proposed Foreign Subsidies Regulation regime “risks creating a chilling effect on investment and participation in the European economy”
3 April 2023
ESMA publishes product governance guidelines
The requirements are akin to the FCA’s Consumer Duty but are not legally binding
31 March 2023
Climate vs competition: A balancing act
In relatively new territory, GPs must juggle climate-based agreements with competition law risks
30 March 2023
Comment: DORA - a paradigm shift
Robert D Maddox and Tristan Lockwood at Debevoise & Plimpton assess new continuity requirements and suggest organisational and technical changes will be needed to comply
29 March 2023
FCA updates on SDR consultation
Final policy statement to come in Q3 2023 due to significant amount of responses
28 March 2023
Lord Mayor of London calls for pensions reform
City of London hopes to create Future Growth Fund to invest in UK’s tech industry
28 March 2023
Comment: Antitrust in me
Merger enforcers turn up the heat on private equity: what can you do to stay cool?
24 March 2023
Mean green litigation machine
ESG jurisprudence continues to develop as BNP Paribas first private player to be hit with lawsuit
17 March 2023
CSSF updates SFDR FAQ
Luxembourg regulator adds three new questions to help clarify SFDR
16 March 2023
UK updates QAHC regime
‘Qualifying fund’ requirement more easily met with further amendments on the way
16 March 2023
Khepri launched via MBO of MJ Hudson UK unit
Will Roxburgh and Mike Booth have led the buyout of MJ Hudson’s UK regulatory and fund management business
13 March 2023
ESLitiGation
As regulators gear up for ESG enforcement action, private litigation is revving its engines, ready to hit the streets
3 March 2023
ELTIF: second time’s the charm
Possibility to set up master feeders and fund-of-funds structures could open up retail investment for small and mid-cap firms
21 February 2023
FCA eyes regulatory streamlining for UK funds
Financial watchdog launches consultation paper as it seeks to modernise current regulatory framework and the use of tech in asset management
20 February 2023
FCA addresses sustainability regulations ‘alphabet soup’
Regulator requests feedback on sustainability-related governance to help reform industry obligations
17 February 2023
Katten launches ESG risk and investigations practice
India D Williams joins firm as practice co-chair with partner Johnjerica Hodge
15 February 2023
AIFMD II: Electric Boogaloo
Regulator expands the scope of delegation and adds new rules for loan-origination funds
15 February 2023
AMF calls for more stringent SFDR regulations
French financial watchdog proposes the introduction of minimal environmental requirements
10 February 2023
Firms’ operations a concern for FCA
Financial watchdog’s recent ‘Dear CEO’ letter holds a lens up to firms’ operational and financial resilience alongside ESG
10 February 2023
UK - Same same but different
The UK's similarly named SDR is akin to the EU's SFDR, but it's best to contrast rather than compare
9 February 2023
Germany - Wait and see
The regulator’s focus on Article 8 funds and failure to address real concerns leaves the industry frozen
8 February 2023
France - Layers and labels
The regulator requires additional disclosures not required by other Member States