Key Compliance Updates in your region – what you need to know

Our North America team provides high touch company registration and authorisation services for both the Securities Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) and the Commodity Futures Trading Commission (CFTC), working with US-based hedge funds, Private Equity and Venture Capital Managers to ensure they keep up to date with all requirements.

In May the SEC released its update on its Proposed Rules for ESG Funds, read our commentary here.  Setting out its Exam Priorities in April, the SEC stated its continued focus on the private funds industry, ESG and emerging technologies and crypto-assets.  Read our online evaluation of the SEC’s intentions in our summary of the key messages.

In February, we highlighted the SEC’s announcement on proposed rules relating to cybersecurity risk management for registered investment advisers, and registered investment companies. This was a clear signal that firms who are not prepared to address cyber security risks will need to take action.

It’s clear that the increasing cyber security threat posed to investment advisers and funds has led to the SEC calling for boards to implement robust safeguards. Read our take on the latest regulatory implications here.

With cyber security coming into sharp focus across the globe, European regulators have been unequivocal in their cyber security expectations. In Ireland the Central Bank of Ireland (CBI) has published Cross-Industry Guidance on Operational Resilience which indicates that Funds and service providers should be able to demonstrate that they have considered the supervisory expectations set out in this guidance and developed a plan to meet the guidance.

Waystone Compliance Solution’s Conor Flynn joined technology editor Adrian Weckler on The Big Tech Show for the Irish Independent recently to talk about the push to replace passwords with two-factor authentication, such as a pin number and facial recognition for operating systems or websites. Listen to the full interview.

The General Data Protection Regulation (GDPR) continues to challenge fund boards and their investment managers in the European Union due to its complexity and the consequences of non-compliance.  We have seen an increased amount of enquiries concerning data protection services, the provision of data protection officers and for data protection advisory services.

We have been providing compliance and regulatory services to the UK market for more than 30 years and were the first specialist compliance consultancy in the UK. Our London-based team offers a range of services including advisory services, assistance with FCA authorisation and compliance training. The team also provides updates on all significant regulatory updates within the UK and the EU on a monthly basis.

In April this year the Financial Conduct Authority’s IFPR newsletter reminded firms that guidance on how to complete the MIFIDPRU returns is now available in MIFIDPRU 9 Annex 2. Our UK/EU Regulatory update goes into more detail on how the regulators are increasing their focus on AML and the latest ESMA briefing on sustainability risks and disclosures in investment management.

Carwyn Evans from our London operation updated us this month on the latest AML, CFT and Sanctions compliance, as a result of the FATF’s 40 recommendations.  These regulations were once focused on financial services firms, but are now impacting a wide range of businesses.  Find out more in his latest update.

We work with firms in both the Dubai International Financial Centre (“DIFC”) and the Abu Dhabi Global Market (“ADGM”). We are uniquely placed to provide the widest range of specialist compliance consultancy services on both a regional and international basis, providing firms with assistance with authorisations and developing and building a robust compliance framework.  We provide guidance to firms in order to help them to navigate the changing compliance landscape.

We offer our clients operating in the financial centres of the DIFC and the ADGM various outsourcing options, including CCO, MLRO, Data Protection Officer and Finance Officer.  Our latest service line launched last month in the UAE is the provision of the Independent Non-Executive Directors to UAE regulated financial institutions.

In April we hosted a UAE specific webinar on data protection developments. Our panel of industry experts, moderated by Suzanna Ballabás, discussed who the legislation applies to, how to comply and the more complex matters of data transfer.

Each month we highlight significant regulatory updates in the UAE-focused edition of our regulatory newsletter.

Singapore’s strong infrastructure and attractive tax system have developed it into a leading fund management centre, where institutions can manage fund operations with a presence and substance in Singapore. Fund Management continues to be one of the main Regulated Activities in Singapore, with approximately 900 Singapore fund management companies in existence. We work with clients to set up a fund management company in Singapore from inception to authorisation.

Our APAC team specialises in regulatory compliance and provides objective insights, subject expertise and a simple approach to all your compliance-related needs. We provide a monthly regulatory update for the region which sets out important regulatory news in an easy-to-read format.

A summary of the services we provide within the region is available on our website  and includes compliance monitoring, training, assistance with licensing and registration and specific knowledge of the Payment Services Act (“PSA”) which came into effect in Singapore on 28 January 2020. This complex piece of legislation streamlines the payment services regulatory framework under a single piece of legislation. Our licensing guide to the Payment Services Act (PSA) provides a thorough guide for firms.