Five European regulatory issues to watch out for 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.

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