RegBrief (December 2015-February 2016)

Author:Ms Orla O'Connor and Robert Cain
Profession:Arthur Cox

RegBrief summarises key recent legal and regulatory developments of relevance to our financial regulatory clients.


Application of AIFMD passport: On 19 January 2016, ESMA published a letter from the European Commission dated 17 December 2015 in relation to ESMA's advice of 30 July 2015 on the application of the AIFMD passport to non-EU AIFMs and AIFs, and ESMA's opinion on the functioning of the passport for EU AIFMs and the national private placement regimes. For further detail, read the Client Briefing issued by our Asset Management and Investment Funds Group.


Irish Consultation: The Department of Finance has published a Consultation Paper (in conjunction with the Department of Justice and Equality) on Member State discretions contained in the Fourth Money Laundering Directive (MLD4) and the Wire Transfer Regulation. The consultation closes on 4 March 2016. Key aspects of the consultation relate to whether gambling services should be exempt on proof of low risk, whether entities should be permitted not to apply certain customer due diligence measures in relation to e-money, the register of beneficial ownership for corporates, the register of beneficial ownership for trusts, the discretion to allow obliged entities mitigate risk through group structures and the discretion to require appointment of 'central contact points'. For further information on MLD4, see our June 2015 Client Briefing.

Commission likely to amend MLD4 this year: The Commission has announced its intention to amend MLD4 in mid- 2016 to enhance due diligence measures for high risk third countries, bring virtual currency exchange platforms into scope, reduce terrorist financing risks posed by prepaid instruments and introduce centralised registers of bank and payment accounts. It is also calling on Member States to transpose MLD4 early (before the end of 2016).


Term reduced to 1 year: On 29 January 2016, the Irish bankruptcy term was reduced from 3 years to 1 year. For further detail, read our recent Client Briefing.


Markets Supervision: On 14 December 2015, the Central Bank's Market Supervision Directorate published its programme of themed inspections for 2016. Our recent Client Briefing highlights the inspections that will be of most relevance to investment firms. For further information on the inspections of most relevance to funds and fund service providers, read the Client Briefing issued by our Asset Management and Investment Funds Group.

Error processes: The Central Bank has published an Industry Letter on the outcome of its desk-based review of the governance of error processes within banks and insurers. It noted that all firms had governance...

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