Navigating climate risk for asset managers

Managing climate risk, together with the ability to measure and disclose, has become a critical aspect for investment managers. Given the potential impact of physical and transitional climate-related risks on many portfolios and businesses, certain climate change assessments and reporting standards are increasingly being codified as regulatory requirements. In Hong Kong, the Securities and Futures Commission has proposed to amend the Fund Manager Code of Conduct requiring climate-related risks to be considered by fund managers.

Related briefings

CSSF clarifies MiFID application to Luxembourg investment fund managers

On 10 June 2021, the Luxembourg Financial Sector Supervisory Authority (the CSSF) issued new versions of (i) its frequently asked questions relating to the Law of 17 December 2010 on undertakings for collective investment and (ii) its FAQs covering the Law of 12 July 2013 on alternative investment fund managers. Both FAQs have been updated following the publication of a FAQ from the CSSF relating to the application of MiFID provisions to Luxembourg Investment Fund Managers.

Snapshot: management meetings confirmed as being integral in section 238 proceedings

The Grand Court of the Cayman Islands has again emphasised the central role that experts play in section 238 proceedings and that it is integral to the process to allow them to meet with management to gather information that they consider to be relevant. In a recent decision in eHi Car Services Limited, Justice Parker ordered the Company to convene a management meeting at the request of the Dissenters’ expert, despite the Company’s protestations that it was not reasonable, proportionate or necessary to do so.

Cayman Islands Funds and Regulatory Update: Q2 2021

The second quarter of 2021 has been relatively quiet on the regulatory front in the Cayman Islands. As the year progresses we are approaching a number of key deadlines for investment funds and this briefing serves as a useful reference guide for upcoming deadlines, as well as an update of certain regulations and guidance issued over the last quarter.

Loan origination – CSSF guidance on private lending

On 15 June 2021, the Luxembourg Financial Sector Supervisory Authority updated its FAQs on the statuses of the Professionals of the Financial Sector by issuing clarifications on lending activities falling out of scope of the authorisation requirement, laid down by article 28-4 of the Law on Financial Sector.

Structuring from the foundations to the stars: Cayman foundation companies and STAR trusts

Cayman boasts a variety of innovative and flexible vehicles and structures beyond the basic trust instrument, which can meet the structuring requirements of a range of entities, from charities to commercial ventures. Foundations and STAR trusts are among the structuring options available, and while similar in terms of the flexibility they afford, both vehicles have distinct properties which may make one more suitable than the other depending on circumstances and requirements.

Latest Briefings

Government consults on new competition regime for digital markets

On 20 July 2021, the UK Government published proposals for a new competition regime for digital markets “to make it fairer for smaller businesses, entrepreneurs, and the British public”. These proposals include significant new powers for the Digital Markets Unit which was recently established within the CMA and an enforceable code of conduct for firms with so-called Strategic Market Status (SMS). The Government is also considering new merger control rules for firms with SMS. The proposals are now open for public consultation until 1 October 2021.

Capital gains tax: will deferred proceeds change after the OTS’s recent report?

In July last year, the Chancellor asked the Office of Tax Simplification (OT) to review capital gains tax (CGT). The aim was to “identify opportunities relating to administrative and technical issues as well as areas where the present rules can distort behaviour or do not meet their policy intent”. Following its review, the OTS published its first report in November 2020. Named “Simplifying by design”, it considered the policy design and principles underpinning CGT. In May this year, the OTS published its second report, “Simplifying practical, technical and administrative issues”. We’re focusing on this report throughout this article, in particular, its section on deferred proceeds.

Axminister: another drafting lottery?

Julian Richards and Lynette Lewis discuss the recent High Court decision in relation to the Axminister pension scheme. This podcast touches on what happened, the impact of the decision and what’s next for the ongoing debate over s.37 confirmations.

Government responds to consultation on changes to the Teachers’ Pension Scheme – key points for independent schools

The Government has issued its response to the recent consultation on changes to the Teachers’ Pension Scheme (TPS), set out in the Teachers’ Pensions (Miscellaneous Provisions) (Amendment) Regulations 2021. The consultation response confirms the Government’s plan to allow a phased withdrawal for independent schools from the TPS and provides final detail of the protections available to certain existing TPS members. Phased withdrawal will allow independent schools to gradually leave TPS by continuing to offer TPS membership to existing staff; while having the discretion to not offer TPS membership for new staff. In this article, our pensions experts take a look at the Government response to the consultation and highlight what employers need to know.

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