1.
Welcome to Euro Shorts, a short briefing on some of the week’s developments in the financial services
industry in Europe.
If you would like to discuss any of the points we raise below, please contact me or one of our other lawyers.
Claire Cummings
020 7585 1406
claire.cummings@cummingslaw.com
www.cummingslaw.com
AIFMD: EMIR delay on passporting opinion
ESMA has announced a delay in publishing its opinion and advice relating to passporting under
the AIFMD, which was due on 22 July 2015. ESMA is in the process of finalising its opinion and
advice to the European Commission, Council of the EU and European Parliament on Article 67(1)
of the AIFMD and will deliver it during the week commencing 28 July 2015. The opinion relates
to the passporting of EU AIFMs and national private placement regimes, while the advice relates
to the passporting of non-EU AIFMs and AIFs into the EU.
AIFMD and UCITS V: remuneration guidelines
ESMA is consulting on guidelines on sound remuneration policies under both the AIFMD and
UCITS V. The amendments to the AIFMD relate to the guidelines for AIFMs being part of a
group. The proposed UCITS V guidelines are based on those already issued on remuneration
under the AIFMD, as the UCITS V remuneration principles broadly reflect those under the
AIFMD. In developing the guidelines, ESMA co-operated with the European Banking Authority
with a view to aligning guidance on remuneration policies across the financial sector. Comments
are invited by 23 October 2015. ESMA aims to publish the final version of the UCITS
remuneration guidelines together with a final report by the first quarter of 2016, ahead of the
UCITS V transposition deadline of 18 March 2016. The final report is expected to include the
final revised AIFMD remuneration guidelines.
AIFMD: ESMA updates Q&As
ESMA has published an updated version of its Q&As on the application of the AIFMD. The
Q&As have been amended to reflect updated answers about reporting information to national

2. competent authorities and calculating the total value of assets under management. The latest
updates are highlighted in yellow in the paper. The aim of the Q&As is to promote common
supervisory approaches and practices in the application of the AIFMD and its implementing
measures and the answers are also intended to help AIFMs by providing clarity on the content of
the AIFMD rules. The Q&As were previously updated in May 2015.
MiFID II
ESMA has published responses to its consultation on draft guidelines for the assessment of
knowledge and competence under MiFID II. The consultation was published in April 2015 and
closed to responses on 10 July 2015. Respondents include: the Association for Financial Markets
in Europe (AFME), The Investment Association, the Wealth Management Association, the
European Fund and Asset Management Association (EFAMA) and the Chartered Institute for
Securities and Investment. ESMA expects to publish a final version of the guidelines in the fourth
quarter of 2015.
EMIR: ESMA publishes responses on clearing obligation consultation
ESMA has published responses it has received to its fourth consultation on draft RTS on the
clearing obligation under EMIR. The draft RTS were published for consultation in May 2015.
Respondents include: the Managed Funds Association, the Federation of European Securities
Exchanges, the European Association of CCP Clearing Houses, the European Systemic Risk
Board and ISDA, FIA Europe and the Investment Association (joint response).
Changes proposed to LPs for private equity investments
The UK government has published a consultation paper seeking views on a number of proposed
amendments to the Limited Partnerships Act 1907. The amendments are aimed at ensuring that
the UK LP remains the market standard structure for European private equity and venture capital
funds as well as many other types of private fund. The government had previously made a
commitment, in the 2013 Budget, to consult on technical changes to the partnerships legislation as
it applies to funds to remove unnecessary legal complexity and administrative burdens. The
proposed amendments will apply to a UK LP that is a collective investment scheme, as defined in
section 235 of FSMA 2000, but is not authorised by the FCA. Comments are invited by 5 October
2015.
EBA peer review on key members suitability
The European Banking Authority has published a peer review report relating to its guidelines on
the assessment of the suitability of members of the management body and key function holders. In
the report, the EBA provides an overview of the peer review assessments of the national
competent authorities (NCAs) from 31 countries relating to the guidelines. Overall, the EBA has
assessed most NCAs as being fully or largely compliant with the guidelines. However, the
assessment has highlighted that the guidelines have not led to sufficient convergence in
supervisory practices and further, that Member States' transposition of CRD IV has not prevented
further divergences arising within national laws. The EBA considers that amended guidelines will
improve the level of convergence across NCAs' practices, and also reflect its mandate under CRD

3. http://safemailer.safeserve.com/admin/index.php?Page=Newsletters&Action=View&id=4666[24/07/2015 12:00:27]
IV.
FATF on vulnerabilities associated with gold
FATF has published a report on money laundering and terrorist financing risks and vulnerabilities
associated with gold. The report identifies the features of gold that make it attractive to criminal
organisations as a mechanism to move value and sets out red flag indicators that could assist
financial institutions, among others, to identify and report suspicious activities associated with
money laundering and terrorist financing in the gold sector. The key findings of the report are
intended to promote effective risk mitigation and preventative measures, or encourage further
work on areas requiring further investigation (for example, the potential links between the gold
market and terrorist financing).
Cummings
Tel: + 44 20 7585 1406
Mob: + 44 7734 057 327
www.cummingslaw.com
24 July 2015