ON THE RADAR:
Regulations affecting data management
Jacob Gertel, Senior Project Manager Legal & Compliance
UCITS PIP / PRIP EUSD SNB-Reporting Taxable
Securities PEP-Check
Final Withholding Tax
UK-Tax French Tax Regulations
Germany Tax
reporting FinGrep
Danish tax types for investment trusts Belgium withholding tax Japan restriction on foreign ownership Canada Tax saving plans SEC Rule
22-C-2 IRS Reporting US various reg. OECD
Reputation Risk
Data Solvency II
2000 2005 2010 2015
SNAPSHOT
Regulations keep evolving and mounting up over time
MiFID I
MiFID II
US Withholding Tax
FATCA
AIFMD
French & Italian FTT
Final Withholding Tax (UK / AT)
FTT
Solvency II LEI
MiFID / FIDLEG
• Stringent consumer protection rules
• Continuous monitoring of
− Risk level of the client portfolio
− Match to risk appetite
− Product suitability
CLIENT IMPLICATIONS
• Higher value services, offering fact-based advice • Always respect the pre-defined risk tolerance/appetite • Clients being active in investment decisions expect:
− A risk “safety net” from the bank
− Risk advice from the advisor
• Pro-active risk management and advice in time of crisis
TIMELINE
• MiFID II into national law in 2016 (planned)
• FIDLEG in consultation
AFFECTED CLIENTS / USERS
• Wealth managers • Private bankers
• Other banks that put focus on wealth management
OUR SERVICE
Sophisticated portfolio risk assessment with ImpaQt
• Achieve regulatory compliance (MiFID / FIDLEG) • Risk models, all required data delivered as service • Empower the advisors to perform on-going risk
monitoring
• Ensure investment suitability and proper documentation for clients
Alternative Investment Fund Managers Directive (AIFMD)
• EU Directive issued by the ESMA
(European Securities and Markets Authority)
• Goal is to ensure transparency of non-UCITS funds
by providing EU ‘passport’ for fund managers and
funds after registration with an EU regulator
• Impact EU and non-EU funds – FINMA has
cooperative agreement with the EU is the areas of
exchange of information and supervision
CLIENT IMPLICATIONS
• Flagging of AIFMD compliant funds
• Instrument classification based on the ESMA directives
for proper fund registration and reporting obligations
6 TIMELINE
• Registration to be completed until 22 July 2014 (registration open since 24 Feb 2014)
AFFECTED CLIENTS / USERS
• Fund management companies and fund managers
• Asset managers and fund custodians
OUR SERVICE
Ongoing instrument classification and KIIDS
• Issuer Level – flagging the issuers having the EU Passport based on the information
published by ESMA
• Instrument Level – categorization of the instruments according to Annex VII (Table of enumerated reporting fields values) of AIFMD.
• KIIDs (similar to PIB/PRIIPs) explain
financial products to investors in a clear and simple manner
• Includes risk and opportunities, and allows to compare alternative investment products more easily
REFERENCE DATA
Financial Transaction Tax (FTT)
•
The Financial Transaction Tax is a tax on financial
transactions.
•
The EU intends to implement the tax in the
following 11 countries:
- Austria, Belgium, France, Germany, Greece, Italy, Portugal, Slovakia, Slovenia, Spain and Estonia
•
The planned tax might affect financial transactions
related to equities, derivatives and HFT with
different tax rates.
•
The EU is working on the directives and intends to
publish them in 2014.
CLIENT IMPLICATIONS
•
Identify, withhold and report of the financial
instruments eligible for the FTT
8 TIMELINE
• France introduced it on 1.8.2012 • Italy as of 1.3.2013
• Rest EU in 2016 (TBC)
AFFECTED CLIENTS / USERS
OUR SERVICE
Detailed tax classification and rate
SIX will populate the data on VDF Tax / Reporting message FSD
Country: Italy (525)
Current Taxes Withholding tax (14) Liable/ applicable (1) Dividend (3) 01.01.2012 --- Tax resident (2): 20 % (4)
Financial transaction tax (high frequency trading) (55)
Liable/ applicable (1) Transaction (4) 01.03.2013 --- Applies to all (3): 0.02 % (4)
Financial transaction tax (generally applicable) (51)
Liable/ applicable (1) Transaction (4) 01.01.2014 --- Applies to all (3): 0.2 % (4)
Financial transaction tax (regulated market or MTF) (53)
Liable/ applicable (1) Transaction (4) 01.01.2014 --- Applies to all (3): 0.1 % (4)
Legal Entity Identifier (LEI) and other Identifiers
• G-20 committed to mitigate systematic risk within financial markets and to provide more transparency to the OTC market. • LEI is a 20 digit alphanumeric code that is designed to uniquely
identify a legal entity that engages in a financial transaction • LEI is supported by an ISO standard (ISO 17442) and within
scope are legal entities, subsidiaries and fund structures • Central Operating Unit (COU) will be the principal operational
arm of the global LEI system.
• Local implementation will be conducted through Local Operating Units (LOUs)
CLIENT IMPLICATIONS
• Usage of the LEI is mandatory for regulatory reporting under Dodd–Frank and EMIR to identify counterparties
10 TIMELINE
• April 2014: 13 pre-LOUs have endorsed status
AFFECTED CLIENTS / USERS
• Any financial institution that trades in OTC Derivatives and/or ET Derivatives either for themselves or on behalf of their clients
• Any financial institution that is required to be compliant with the following regulations:
Dodd-Frank, EMIR, HKMA (Hong Kong), Monetary Authority of Singapore, AIFMD, MiFID II/MiFIR, Solvency II, COREP (Common Reporting)
OUR SERVICE
