European Commission Work Programme 2012 - Funds-related Developments

Author:Ms Tara Doyle and Michael Jackson
Profession:Matheson Ormsby Prentice

The European Commission has published a pre-final Work Programme for 2012. The funds-related developments which the work programme addresses are:

UCITS V: Amendment of the UCITS IV Directive as regards rules on UCITS depositary functions, on manager remuneration policy, and on administrative sanctions. The Commission has indicated that the proposed legislation will be published in the Q2 2012. Shadow Banking: A communication will be adopted in the second half of the year to complement and implement the G20 work stream. This follows the Financial Stability Board's (FSB) Report on Shadow Banking: Strengthening Oversight and Regulation issued on 27 October 2011, and may impact hedge funds and money market funds which may be viewed as "non-bank credit intermediation in the financial system" (ie shadow banking). Packaged Retail Investment Products ("PRIPS"): Legislative proposals in this area will be introduced to ensure a high and consistent level of investor protection, with a level playing field for the originators and distributors of retail investment products and increased efficiency in cross-border business. (Q1 2012) Third Anti Money Laundering Directive: The Commission has begun its post-implementation review of the Third Anti Money Laundering Directive and a report is planned in March 2012. The Financial Action Task Force ("FATF") is also in the process of revising its standards and should adopt new standards in February 2012. The Commission states that the EU will rapidly implement the new standards into its legislation ahead of the new round of FATF evaluations. Continuing to Network - Update on Ireland's Double Tax Treaties

In total, Ireland has now signed comprehensive double taxation agreements with 64 countries, of which 56 are in effect. Ireland signed double tax treaties with Armenia and Saudi Arabia on 14 July 2011 and 19 October 2011 respectively. On 8 April 2011, Ireland's agreement with Singapore came into force, effective from 1 January 2011. Ireland's new agreement with Hong Kong, which was signed on 22 June 2010, came into force on 10 February 2011 and will be effective from 1 January 2012. An updated agreement with Germany was signed on 30 March 2011 and negotiations for new agreements with Panama, Thailand and Uzbekistan have been concluded and these agreements are expected to be signed shortly. Work is also...

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