Pathfinder - Deloitte monthly regulatory update - 12/06/2013


Modernisation of Accounting Law

Draft Law 6376 (French only at this stage) reforming the Commission des normes comptables (CNC – Accounting Standards Commission) and amending various provisions relating to companies’ accounting and annual accounts and to the consolidated accounts of certain types of companies and amending:

  • Title II of the first book of the Commercial Code
  • Title II of the Law of 19 December 2002 on commercial and companies register and on the accounting records and annual accounts of undertakings (as amended)
  • Section XVI of the Law of 10 August 1915 on commercial companies (as amended)

On 23 May 2013, the Commission juridique submitted and validated its set of amendments 6376/09 (French only at this stage).

Issues under Article 52(4) of the UCITS Directive

Issues - Article 52(4) of Directive 2009/65/EC – CSSF May 2013

Member States are authorised to raise the investment limit applying to UCITS for investments in certain types of bonds fulfilling the criteria set down in Article 52(4) of Directive 2009/65/EC. According to this authorization, the CSSF launched in May 2013 a new page on its website entitled “Issues - Article 52(4) of Directive 2009/65/EC”. The purpose of this page is to make available the list of issues fulfilling the different criteria laid down in Article 52(4) of UCITS Directive 2009/65/EC transposed into national law by Article 43(4) of the Law of 17 December 2010, as amended, and establishing on the basis of the information provided by banks issuing mortgage bonds.

Money Market Funds

Recommendations of the European Systemic Risk Board of 20 December 2012 on money market funds (ESRB/2012/1) - 2013/C 146/01 - OJ C 146 of 25/05/2013

On 20 December 2012, the European Systemic Risk Board (ESRB) addressed Recommendations to the European Commission as regards Money Market Funds (MMFs), a key component of the shadow banking sector. The aim of these Recommendations is to support and assess the implementation in Europe of the Financial Stability Board (FSB) shadow banking reforms in relation to MMFs.

Those Recommendations published in Official Journal C 146 of 25 May 2013 are the following:

  • Mandatory move to Variable Net Asset Value (VNAV): MMFs should be required to have a fluctuating net asset value.
  • Liquidity requirements: Existing liquidity requirements should be enhanced by imposing explicit minimum amounts of daily and weekly liquid assets that MMFs must hold.
  • Public disclosure: The marketing material of MMFs should draw the attention of investors to the absence of a capital guarantee and the possibility of principal loss.
  • Reporting and information sharing: Any instances of sponsor support should be reported to the responsible national supervisory authorities, which should share this information with other relevant national and European authorities. The regular reporting of MMFs should be further enhanced and harmonised.

The Commission is requested to deliver to the ESRB an interim report containing a first assessment of the implementation of these recommendations by 30 June 2013, and a final one to the ESRB and the Council by 30 June 2014.  

Discover the other topics of this newsletter in the attached PDF.

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