Tuesday 28th June 2016
NEWS TICKER: JUNE 28TH: This morning the story is about keeping calm even as the West European political landscape looks set to change forever. The aftershocks from the UK’s decision to leave the EU last week will continue for some time. This morning however the focus is on the UK Chancellor’s statement that was designed to calm the markets and set out a marker for the Leave camp in the ruling Conservative Party to keep him in a unity government if the divorce from the EU is to proceed unimpeded. Expect lots of posturing, but the reality is a deal will be wrought between prominent Remainers and Leavers, so that they can ‘sell’ to a clearly divided population that a reasonable outcome for the UK can be achieved. Expect also that many Leaver will now renege on many of the pledges and charges levelled against the EU, as they were plangently either not achievable or true. Politically, the fallout is far from over: Nicola Sturgeon, whose reputation has been enhanced by the referendum will now seek ways for Scotland to exit the Union; a clever move as firms looking to locate overseas to keep long term free access to Europe will now seriously consider Edinburgh and Glasgow as alternatives to Ireland or Luxembourg. There are areas of concern however: one is in Northern Ireland, where a call for a Border Poll by leader Martin McGuinness could reignite old political divisions and moves by many MPs in the Opposition Labour Party to oust the party’s leader Jeremy Corbin is distracting attention from the main question: how does the UK extricate itself from Europe with the most gain and least pain to all sides. While Leave campaigners and television commentators look to try to reassure the British public that they should not be worried by short term movements in sterling and the stock market. According to brokerage Clear Treasury: “Sterling this morning has drifted lower again since Friday’s close which saw the pound depreciate 9%. The worst may not be over for the pound either as the Brexit fallout is by no means over. We will likely see aftershocks in the market for the foreseeable future. The difficulty here will lie in anticipating these shocks, and for this reason it’s hard to justify many traders being able to justify holding or purchasing additional sterling. This is why we feel that the pound may not have reached its bottom just yet. Keep a close eye on economic data from the UK with GDP, market sentiment, retail figures etc all likely to be impacted going forward” – The world’s top central bankers meet in Brussels today for a three-day summit; no doubt Brexit is on the agenda and they will certainly be talking measures to calm the markets. On Tuesday, European leaders meet and following the inimitable Angela Merkel’s admonition to all Europeans to treat with the UK kindly and well will help defuse what could have been a rancorous meeting – St Louis Missouri-based Stifel Financial Corporation today announced that it has entered into a definitive agreement to sell Sterne Agee's legacy independent brokerage, clearing, and RIA businesses to INTL FCStone Inc. (NASDAQ: INTL). Following a financial restructuring of the combined businesses, consideration will approximate the tangible net asset value of the entities. The transaction is expected to close immediately after regulatory approval, which is anticipated in July. As part of the agreement, Stifel has agreed to sell: Sterne Agee Financial Services, Inc.; Sterne Agee Clearing, Inc.; Sterne Agee Leach, Inc.; Sterne Agee Asset Management; and Sterne Agee Investment Advisory Services. To support these businesses, INTL FCStone has agreed to hire substantially all of the Birmingham, Alabama-based support professionals. Ronald J. Kruszewski, chairman and CEO of Stifel, says, "Last year we successfully integrated the Private Client Group branches and institutional fixed income business from our Sterne Agee acquisition. We are pleased to have found an acquirer in INTL FCStone who is committed to these businesses and the professionals in the Birmingham community." -

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Ireland’s central bank issues consultation on post-AIFMD non-UCITs funds regime

Wednesday, 14 November 2012
Ireland’s central bank issues consultation on post-AIFMD non-UCITs funds regime The Central Bank of Ireland has released a public consultation proposing enhancements to its non-UCITS regime in preparation for the implementation of the European Union’s (EU’S) Alternative Investment Fund Managers Directive (AIFMD). The implementation of AIFMD will give rise to substantial changes to the non-UCITS funds industry. It is proposed that the current Qualifying Investor Fund (QIF) regime in Ireland will be replaced with a new Qualifying Investor Alternative Investment Fund (QIAIF) regime. For retail investors in non-UCITS products, a separate Retail Investor Alternative Investment Fund (RIAIF) regime will be created. http://www.ftseglobalmarkets.com/

The Central Bank of Ireland has released a public consultation proposing enhancements to its non-UCITS regime in preparation for the implementation of the European Union’s (EU’S) Alternative Investment Fund Managers Directive (AIFMD). The implementation of AIFMD will give rise to substantial changes to the non-UCITS funds industry. It is proposed that the current Qualifying Investor Fund (QIF) regime in Ireland will be replaced with a new Qualifying Investor Alternative Investment Fund (QIAIF) regime. For retail investors in non-UCITS products, a separate Retail Investor Alternative Investment Fund (RIAIF) regime will be created.

Some fundamental changes set out by the Central Bank of Ireland at the end of October in its consultation paper on the implementation of Europe’s Alternative Investment Fund Managers Directive (AIFMD) is designed to help strengthen Ireland’s attractiveness to international managers. Fearghal Woods, chairman of the Irish Funds Industry Association (IFIA) explains, “the authorities in Ireland are making significant progress towards implementing a range of legislative and other measures to enable the broadest possible range of regulated structures for alternative investment managers of all types to coincide with the introduction of the AIFMD directive and that will help maintain Ireland's position as a leading funds jurisdiction".

Interested market participants have six weeks to let the central bank know their comments on the proposed changes. Usually open consultations of this kind are allotted 12 weeks, but given that the AIFMD rules come into force in July 2013, time is of the essence and the central bank has opted for a shorter consultation process. “The central bank is sending out a strong signal that it is aware of change in the non-UCITS world and this consultation not only reflects the changes that are happening but seeks to anticipate future changes,” explains Kieran Fox, head of business development at IFIA.



Core to proposed changes to the country’s non-UCITS investment regime is the consolidation of the country’s regulatory book into a new single handbook covering all regulation for AIFMs. This consolidation will see the removal of countless minor regulatory requirements which have come into place over the years. “It is a game changer,” concedes Fox, “and it is clear that we have moved from a complex regulatory structure, that involves non-UCITS notice documents, and a dozen or so guidance notes and policy documents as well as an array of other ad hoc regulations towards it being brought into one handbook with appropriate chapters covering key market segments.”

According to the central bank, these changes will result in a more efficient and streamlined regulatory environment for all types of alternative investment funds in the country. “The timing of this consultation process will allow managers to establish AIFMD compliant funds in time for the implementation of the EU directive in July of next year,” explains Eoin Fitzgerald, managing director, Morgan Stanley Fund Services, and a member of IFIA Council, which leads industry engagement.

The central bank is proposing the redesign of its AIF regime to optimise its reliance on European regulatory requirements, or at least those set out in the AIFMD; the creation of a higher risk AIF option to UCITS for retail investors; the elimination of regulations on QIAIFs that are not substantially adding to the protection of investors as well as the application of the AIFMD depositary regime to all authorised AIFs, including those with AIFM below certain thresholds.

Changes to share class rules, the issuance of partly paid units and the removal of existing property fund rules will make it more attractive and easier to establish both private equity and property funds in Ireland. IFIA chief executive Pat Lardner explains that with 40% of the world’s hedge funds serviced in the country, “Ireland is the leading global centre for the domiciling and servicing of alternative investments.”

For more on this story, read the November edition of FTSE Global Markets, or visit the website: www.ftseglobalmarkets.com from Friday onwards.

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