Financial Services: Key Dates for 2018

PUBLISHED: 22nd March 2018

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2018 has already seen some important regulatory developments for financial services –  make sure you don’t miss any of the following key dates for your business.

Date  Activity Notes
1 PRIIPs Regulation in force
Date the Regulations on key information documents (KIDs) for packaged retail and insurance-based investment products (Regulation 1286/2014) (PRIIPs Regulation came into force). 
Click to view our article PRIIPS: What you need to know.
1 IFRS 9 standards in force
Under the International Financial Reporting Standard (IFRS) 9, which entered into force on 1 January 2018, financial institutions must recognise loan losses earlier than previously.  The European Central Bank has outlined key supervisory expectations for the ongoing implementation and application of IFRS 9 in the SSM thematic review below.
Click to view the SSM thematic review on IFRS9
3 MiFID II Directive and MiFIR in force
Date the Markets in Financial Instruments Directive II Directive (2014/65/EU) and Markets in Financial Instruments Regulation (Regulation 600/2014) (MiFIR) came into force.
Click to view our article The Practical Implications on MiFID II
13 PSD2 in force
Date the Payment Services Directive 2 (PSD2),(EU) 2015/2366 came into force.
PSD2 changes the payment services landscape for established banks, new entrants and FinTech companies alike.  Aiming to drive innovation, transparency and competition for the benefit of consumers, the PSD2 requires EU banks to open their infrastructures to third-party providers while ensuring adequate security.
Click to view our article Small Payment Institutions and Ireland
19 Key Investor Information Documents (KIIDs). The deadline for the annual update of KIIDs to be filed with the Central Bank (mainly a change in past performance).  It is also necessary for any updated KIIDs which are filed in any other host jurisdictions for the purpose of marketing its shares to be translated and filed with the host regulator.
28 Annual Pre-Approval Controlled Function (PCF) Confirmation Return Regulated Financial Service Providers must complete an annual PCF Confirmation Return to the Central Bank through the Online Reporting System by this date.
1 Regulation amending EuVECA & EuSEF comes into force
Regulation amending the European Venture Capital Funds Regulation (Regulation 345/2013) (EuVECA Regulation) and the European Social Entrepreneurship Funds Regulation (Regulation 346/2013) (EuSEF Regulation) applies from 1 March.
Click here to view our article EuVECA and EuSEF Regulation amendments making their way through the European Parliamentary Process
18 UCITS V Directive transitional period ends
The transitional implementation period under UCITS V Directive (2014/91/EU) for Depositaries ends. The UCITS V Directive came into force on 17 September 2014 and EU Member States were required to transpose it into national law by 18 March 2016.
Click to view our article UCITS V Directive Implemented into Irish Law
9 Cybersecurity Directive transposition deadline The Directive sets out the deadline for EU Member States to adopt and publish measures transposing the Directive, which introduces measures for a high common level of security of network and information systems across the EU
25 General Data Protection Regulation
Investment Funds, Management Companies, Alternative Investment Fund Managers, Distributors, Fund Administrators and Depositaries may need to review existing documents to comply with the General Data Protection Regulation 2016/679.
Click to view our Latest GDPR News & Insights
26 ESA guidelines on AML/CTF comes into force
The Central Bank expects firms to comply with the European Supervisory Authorities joint guidelines on simplified and enhanced due diligence by 26 June 2018.
Click here to see our article Anti-Money Laundering and Counter Terrorist Financing. 
30 Internal governance: EBA Guidelines enter into force
The European Banking Authority (EBA) has published the final version of its revised Guidelines on Internal Governance (EBA/GL/2017/11).These Guidelines aim to further harmonise the internal governance arrangements, processes and mechanisms of EU banks.
The revised Guidelines will enter into force on 30 June 2018, and replace the EBA's 2011 Guidelines.
1 CP86: Management Companies Guidance 2016
Existing fund management companies (being UCITS management companies, AIFMs,
self-managed UCITS and internally managed AIFs) must comply with a number of new rules by 1 July 2018.  These new rules relate to the streamlining of managerial functions as set out in the Central Bank’s Fund Management Companies Guidance 2016.
Click to view our article Central Bank Finalises Guidance and Rules for Fund Management Companies
21 Money Market Fund Regulations enter into force Regulation (EU) 2017/1131) on money market funds (MMF Regulation) introduces a framework of requirements to enhance the liquidity and stability of EU money market funds (MMFs).  The MMF Regulation introduces new requirements for MMFs, whether they are UCITS or AIFs, relating to portfolio composition, valuation of assets, diversification, liquidity management and the credit quality of investment instruments.  Existing MMFs will have until 21 January 2019 to demonstrate compliance with the MMFR.
1 Insurance Distribution Directive enters into force On 20 December 2017, the European Commission proposed to push back the application date of the Insurance Distribution Directive (EU) (2016/97) (IDD) by seven months to 1 October 2018.  EU countries are still required to transpose the IDD into national law by the original date, 23 February 2018.  In order to align the application dates, the Commission is also preparing to postpone the application of two delegated regulations adopted under the IDD.
30 Filing annual accounts of Variable Capital Companies with the CRO The Companies (Accounting) Act 2017 obliges UCITS investment companies and AIF investment companies to file annual accounts for financial years commencing on or after 1 January 2017 with the CRO within eleven months of the relevant financial year end.  By 30 November 2018 we will see the first such accounts being filed.
Developments in 2018
The Fourth Money Laundering Directive
In late December 2017, the Council of Europe, the European Parliament and the European Commission reached political agreement on a new anti-money laundering (AML) directive known as MLD5.  MLD5 is a set of measures which amend the Fourth AML Directive (Directive (EU) 2015/849 (MLD4)).  It was intended that MLD4 would be implemented into national law by each EU Member State by 26 June 2017.  Some EU Member States, including Ireland, have yet to finalise implementation of MLD4. This is expected to happen in early 2018.
Click to view our article Transposition of the Fourth Anti-Money Laundering Directive
The planned overhaul of the Limited Partnership Structure in Ireland
In 2017 the Irish Government approved the legal drafting of a Bill to reform the structure of limited partnerships in Ireland. The Bill, which is expected to be published during 2018, is a critical element ensuring Ireland retains its status as a preferred location for investment funds.
Click to view our article Limited Partnership Structures
New rules on prospectuses: improving access to capital markets for companies
The aim of the Prospectus Regulation in the context of the capital markets union is to facilitate access to financial markets for companies, particularly small and medium-sized enterprises.  The new Regulation on prospectuses is intended to simplify the rules and streamline related administrative procedures in order to make it cheaper and simpler for small businesses to access capital markets.
Click to view our article The Capital Markets Union
Central Bank Priorities in 2018 
The Central Bank expects regulated firms across all sectors to consider, plan and adapt to the potential implications for their business models and revenue streams.  The Central Bank has noted that it is the responsibility of directors of regulated firms to think carefully about the potential impact of Brexit  on their firm and to plan accordingly.
Click to view our Latest Brexit News & Insights. 
MiFID implementation
The Central Bank has made assessing the adoption of the MiFID II requirements by firms a key priority and this will be achieved through targeted visits, full risk assessments and thematic reviews. There will also be a particular focus on the transaction reporting obligations of firms which has increased significantly under MiFIR.
Click to view our article The Practical Implications of MiFID II: Reporting and Records - Additional Obligations. 
IFRS9 As outlined above, with the implementation of IFRS 9 the Central Bank is withdrawing its existing Impairment Provisioning and Disclosure Guidelines effective from 1 January 2018.  
IT and Cyber Risk
The Central Bank has noted that Information Technology and Cyber Risk will continue to be a focus of supervisory attention over the coming period and that in very many cases IT and Cyber Risk management has not been of a sufficiently high standard, nor has it been given sufficient attention by senior management.
Click to view our article Cyber Security Threats: Implications for Irish Fund Boards and Managers
The Central Bank is currently undertaking a cross-sectoral analysis of outsourcing practices and will shortly issue a survey to regulated firms to gain insight into the current and future pattern of outsourcing arrangements.
Click to view our article ESMA Issues Opinion on General Principles To Support Supervisory Convergence Post-Brexit
The Central Bank recognises that there are both challenges and opportunities presented by FinTech. The Central Bank aims to “get the balance right by protecting consumers and the system, from innovations which may be harmful or unsuitable”.
The Central Bank has mentioned that distributed ledger technologies; peer to peer lending; robo advisors; innovative trading platforms; crypto-currencies, coin offerings and digital wallets as just some of the FinTech topics on their agenda.
Conduct, behaviour and culture Conduct, behaviour and culture has been singled out as one of the most important topics for the Central Bank and that "simply having the structures in place is not enough – it is the behaviours within and around these structures that will ultimately determine their success.” The Central Bank will rely on senior management and the board of directors to set the required tone to ensure that it is at the forefront of priorities for all staff in an organisation. 

For more information, please contact Trevor Dolan of our Financial Services team

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