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HIGHLIGHTS OF THIS ISSUE
ESMA
- ESMA coordinates regulatory response to the war in Ukraine and its impact on EU financial markets
- EU financial regulators warn consumers on the risks of crypto-assets
- ESAS issue updated supervisory statement on the application of the sustainable finance disclosure regulation
- ESMA proposes amendments on the review of transparency requirements under MiFIR
- ESMA issues its 2021 corporate reporting enforcement and Regulatory Report
FCA
- Update on the market share test under the ancillary activities exemption for commodity derivatives
- FCA confirms Packaged Retail and Insurance-based Investment Products(PRIIPs) Regulation
SEC
- SEC Proposes Amendments to Remove References to Credit Ratings from Regulation M
AIFMD
- The Central Bank revises its “Publication of national provisions governing marketing requirements for AIFs” webpage
New Q&A
Upcoming Filing Deadlines
Form PF and Form ADV
**At a Glance**
Dear Valued Customer,

Indus Valley Partners presents its April 2022 issue of Regulatory Reporting headlines, expressly intended to give noteworthy bits of knowledge to support supervisors in the compliance space and give a thought on how our answers are advancing to meet them.

This distribution serves the ongoing administrative updates epitomizing the greater part of the Alternative Investment space fundamentally in the US and the greater part of the ward of Europe. We spread AIFMD, MiFID, SSR, TR-1 from ESMA and Form PF, 13F, 13D, 13G, Form 3, 4, 5, Form CPO, and Form ADV from SEC among others.
ESMA
(i) ESMA coordinates regulatory response to the war in Ukraine and its impact on EU financial markets
 
What?
On 14th March 2022, ESMA served a forum for supervisors to discuss and organize answers to concerns that have occurred as a result of the current situation. The European Securities and
  Markets Authority (ESMA) discussed its unique oversight and coordinating activity which includes activities like- CCps, Credit Rating Agencies, Benchmarks, Investment Management, Secondary Market, Central Securities Depositories, Cyber Securities & Risk Management. In addition ESMA provided market recommendations for Sanction Compliance, Market disclosure & Financial reporting.

Why?
ESMA is actively monitoring the impact of the Ukraine crisis on financial markets, in collaboration with National Competent Authorities (NCAs), and is prepared to deploy its necessary measures to maintain market order, financial stability, and investor protection.
 
(ii) EU financial regulators warn consumers on the risks of crypto-assets
 
What?
On 17th March 2022, ESAs(ESMA, EBA & EIOPA – the ESAs) along with the Central Bank highlighted that Crypto assets are not suitable for most retail consumers whether in the mode of an investment, payment or exchange.
  As if they acquire these assets they may face a risk of losing all their money. ESAs added that Consumers should also be aware of deceptive marketing, including those on social media.
 
Why?
This warning comes amid a surge in consumer interest in crypto-assets and associated products, as well as extensive public advertising of such assets and related things, particularly on social media.
 
(iii) ESAS issue updated supervisory statement on the application of the sustainable finance disclosure regulation
 
What?
On 25th March 2022, The ESAs clarified that, under Articles 5 and 6 of the Taxonomy Regulation, the supervisory expectation for interim disclosures is that financial market participants provide an explicit quantification in the form of a percentage, of the extent to which the investments underlying the financial product are taxonomy-aligned. The initial joint supervisory statement, which was released in February 2021, has been replaced by this amended statement.
  Why?
The supervisory statement intends to promote the SFDR's effective and consistent application, as well as national oversight, in order to level the playing field and protect investors.

What next?
Within three months following its publication, the European Commission must adopt the ESA's draft RTS. Subject to the European Parliament and the Council of the European Union not objecting
 
(iv) ESMA proposes amendments on the review of transparency requirements under MiFIR
 
What?
On 28th March 2022, ESMA, the EU's securities markets regulator, proposed targeted amendments to some of its Regulatory Technical Standards (RTS 1 and RTS 2), which specify the transparency requirements for equity and non-equity markets under the Markets in Financial Instruments Regulation (MiFIR). ESMA decided to carry out its review of RTS 1 and RTS 2 in two steps-
 
- This final report offers a first set of recommended revisions to address problems that have garnered widespread support and/or are regarded critical in the context of creating a consolidated tape provider (CTP)
- Following the MiFIR review, which is presently being debated, a second, larger study will be conducted. It will concentrate on the RTS 1 and 2 adjustments that are required as a result of the MiFIR study, as well as an examination of ideas included in the Consultation Paper issued in July 2021 but not addressed in this final report.

Why?
The transparency regime for equity and non-equity instruments will be clarified, improved, and simplified as a result of these modifications.

What’s Next?
The reports, which are normally of interest to all market participants engaged on EU markets, are officially submitted to the European Commission, which has three months to determine whether to accept the proposed RTS adjustments.
 
(v) ESMA issues its 2021 corporate reporting enforcement and Regulatory Report
 
What?
On 30th March 2022, ESMA issued the 2021 Corporate Reporting Enforcement and Regulatory Report. This report aims to promote Transparency, Accountability and Investor protection. Key highlights of this report were-
- 711 examination of financial accounts prepared in accordance with IFRS.
- The presentation and disclosure of alternative performance measures (APM) were assessed in 537 management reports to see if they followed ESMA's APM Guidelines.
  Why?
After reviewing how issuers comply with International Financial Reporting Standards (IFRS) and non-financial reporting responsibilities, as well as ESMA's recommendations, ESMA offers suggestions to issuers and auditors to enhance future financial and non-financial reports.

What’s Next?
ESMA expects issuers, audit committees, and auditors to analyze the report's conclusions and recommendations when generating and analyzing financial reports statements.
FCA
(i) Update on the market share test under the ancillary activities exemption for commodity derivatives
 
On 14th March 2022, MiFID II Article 2(1)(j) that allows businesses dealing in Commodities derivatives, emission allowances, and emission allowance derivatives to be excluded from MiFID investment firm authorisation provided they meet specified conditions.
  What’s Next?
FCA is seeking feedback on clarifications to PERG and UK RTS 20 through April 11, 2022, in order to make it clear that passing’ the market share test' is not a requirement to qualify for the ancillary activities exemption.
 
(ii) FCA confirms Packaged Retail and Insurance-based Investment Products(PRIIPs) Regulation
 
On 25th March 2022, The Financial Conduct Authority (FCA) confirmed modifications to the Packaged Retail and Insurance-based Investment Products (PRIIPs) rule to address the areas where investors are at most harm. It includes that those who manufacture, sell or advise on PRIIPs are required to produce a key information document (KID) about the product they are selling
  Why?
These changes eliminate information regarding the performance of specific products that can be deceptive to customers, allowing individuals purchasing without financial guidance to depend on the KID to make better educated investing decisions.

What Next?
The Firms Will now have until 31th December 2022 to implement the changes. And more clarity will be provided by FCA about how the expect Firms to prepare narrative descriptions of performance within KIDs
SEC
(i) SEC Proposes Amendments to Remove References to Credit Ratings from Regulation M
 
What?
On 23rd March 2022, SEC recommended amendments to Rule 101 and Rule 102 of Regulation M, a set of regulations meant to protect market integrity by barring acts that might unduly impact the market for an offered securities. The Commission also decided to propose a recordkeeping requirement for broker-dealers who make the probability of default determinations under Rule 17a-4(b)(17).
  Why?
If enacted, it will meet Congress's obligation to exclude all references to credit rating agencies from our regulations.

What’s Next?
SEC and the Federal Register will both publish the proposed release. The comment period will be open for 60 days after the proposed release is published on the SEC's website or 30 days after the proposed release is published in the Federal Register, whichever comes first.
AIFMD
(i) The Central Bank revises its “Publication of national provisions governing marketing requirements for AIFs” webpage
 
What?
On 4th March 2022, The Central Bank updated Publication of national provisions governing marketing requirements for AIFs webpage , to include a list of information and documentation that must be submitted to the Central Bank when an AIF based in another jurisdiction wishes to market its units to retail investors in Ireland.
  Why?
This was done with the objective of providing more transparency regarding the AIF information.
New Q&A
  SFTR
Q&As on SFTR Reporting
Upcoming Filing Deadline
Form PF deadlines
Type Due Date
Large Liquidity Fund 15th April 2022
Private Fund Advisors 30th April 2022


AIFMD deadlines Jurisdiction wise
Jurisdiction Q1 2022
  Direct Investment AIFs FoF & AIFM
Netherland 30th April 2022 15th May 2022
Denmark 30th April 2022 15th May 2022
Iceland 2nd May 2022 16th May 2022
Sweden 2nd May 2022 16th May 2022
Cyprus 30th April 2022 15th May 2022
United Kingdom 2nd May 2022  
Finland 2nd May 2022 16th May 2022
Norway 30th April 2022 15th May 2022
Belgium 2nd May 2022 16th May 2022
Form PF and Form ADV
(i) There are no material updates for Form PF and ADV. For FAQs refer to the below links:
- Form PF
- Form CPO
- Form ADV
- Form 13F
- For any other information visit www.sec.gov

To keep track of AIFMD FAQs you may visit this link.
At a Glance

Commodities boomed – now they’ve busted. What comes next?

After weeks of robust rises, commodities such as gold and oil have plummeted. Commodities have been a clear winner on Wall Street this year, as global demand and the Ukraine conflict have put a pressure on supply.

The war caused panic and fury, which is why those spikes appeared. We probably need a calming period as markets recover their feet and we can reconsider now that the washout is over.

The big question is whether we're about to enter a bear market. It totally depends upon where the share price will settle.

Moreover, Hedge funds have increased their commodities bets as prices have risen due to global unrest, and managers with large exposure are profiting handsomely.

According to Morgan Stanley prime brokerage statistics, the energy sector experienced the largest net purchasing from hedge funds last month compared to other groupings of companies. According to the statistics, the combination of the purchasing and the outperformance of energy resulted in the hedge fund community's net exposure hitting a two-year high.

Meanwhile, Soroban Capital has profited at least several hundred million dollars on commodities bets since February, according to the Wall Street Journal. Soroban did not reply to a request for comment from CNBC.

Other major investors are also increasing their bets on the energy industry.
Any feedback or suggestion is always welcome. In case you require more information, email raptorsupport@ivp.in and we will be happy to provide an in-depth analysis.

We look forward to having a collaborative partnership with you and easing your filing experience.

Sincerely,
IVP Regulatory Reporting Team
For enquiries contact us at

sales@ivp.in or +1(201) 984-1045
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