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John Verwey

John Verwey is a partner in the Private Funds Group. John advises on a wide number of regulatory issues at a national UK and European level, including firm authorisations, appointed representative arrangements, change in control, market abuse. He represents a variety of clients that range from small start-up fund managers to established global fund advisers and managers.

A particular area of focus for John is Alternative Investment Fund Managers Directive (AIFMD) and Markets in Financial Instruments Directive II (MiFID II).  This includes advising on pre-marketing and marketing strategies for fund managers, advising on the Level One and Lever Two requirements under AIFMD and implementing UK rules and legislation, and advising on the organizational and conduct of business requirements under MiFID II.

Welcome to the UK Regulation Round Up, a regular bulletin highlighting the latest developments in UK and EU financial services regulation.

Key developments in May 2024:

31 May

ESG: The Financial Conduct Authority (“FCA”) updated its webpage on the sustainability disclosure requirements (“SDR”) and investments labelling regime. Among other things, the

Background

On 23 May 2024, Ashley Alder, the Chair of the UK Financial Conduct Authority (“FCA”), delivered a speech which outlined the regulator’s agenda for the asset management sector (the “Speech”). In particular, the Speech covered how regulation relates to the FCA’s new objectives for competitiveness and growth.

Key Points

The

On 31 May 2024, a new anti-greenwashing rule is being introduced by the Financial Conduct Authority (the “FCA”) as part of its Sustainability Disclosure Requirements (“SDR”). We cover here the introduction of the FCA’s anti-greenwashing rule and apply a legal lens on some key risk points to consider in the asset management sector.

What is

The European Securities and Markets Authority (“ESMA”) has published its Final Report on the Guidelines on funds’ names using ESG or sustainability-related terms (the “Guidelines”).  ESMA was provided with the mandates to develop guidelines on unclear, unfair or misleading fund names in the updated Alternative Investment Managers Directive[1] (“AIFMD”) and UCITS Directive, which are now in force.

On 3 May 2024, the European Commission published a summary of the 2023 consultation on the EU Sustainable Finance Disclosure Regulation (“SFDR”) (the “Summary”).  For more information on the consultation, please see our alert here.

Whilst the Summary does not hold substantive policy views of the European Commission, the feedback

Welcome to the UK Regulation Round Up, a regular bulletin highlighting the latest developments in UK and EU financial services regulation.

Key developments in April 2024:

30 April

Financial Markets Infrastructure: The Bank of England published a speech by Sasha Mills, Executive Director, Financial Market Infrastructure, on operational resilience and its expectations of financial market

After political to-and-fro for over two years, the EU Corporate Sustainability Due Diligence (“CS3D”) made it over the line on 24 April 2024 with the European Parliament formally approving it.

We set out the headline requirements and timing of CS3D below.

What is the CS3D?

This legislation is far-reaching with mandatory human rights

On 31 May, 2024, a new anti‑greenwashing rule is being introduced by the Financial Conduct Authority (the “FCA”) as part of its Sustainability Disclosure Requirements (“SDR”). However, the FCA has only recently published their finalised anti‑greenwashing guidance, leaving firms with around a month’s time to review and implement the final guidance to ensure compliance.

The

On 22 April 2024, the European Securities and Markets Authority (“ESMA”) provided its response to the European Commission’s request on amendments to the draft regulatory technical standards (“RTS”) in respect of Regulation EU/2023/606 relating to the European long-term investment fund (“ELTIF 2.0”).

In the response, ESMA suggested that there

The Financial Conduct Authority (the “FCA”) on 23 April 2024 has published its Consultation Paper CP24/8 (the “CP”) on the extension of its Sustainability Disclosure Requirements (“SDR”) to portfolio managers. This follows the publication of their SDR requirements for asset managers, which we reported on here in November 2023.