Legal briefings from the world's leading law firms

Macfarlanes reviews the week's key financial developments. Discussed in this update are ESMA's guidelines on MiFID remuneration; Draft AiFMD UK Regulations; Collective Investment in Transferable Securities; FCA quarterly consultation paper; and prospectus liability regimes in Europe.

Macfarlanes' financial services update discusses AIFMD applications and variations of permission; FCA feedback on UCIS; the Financial Conglomerates Directive technical review; ESMA's techical advice on the short selling directive; FATCA draft regulations and guidance; and more.

There is plenty that companies can do to prepare ahead of the expected 2015 implementation of the EU-Wide Data Protection Regulation. This briefing from Macfarlanes covers the main steps to prepare across internal compliance; international data transfers; and more robust regulators.

On 22 May, the European Banking Authority published a consultation paper on draft technical standards on the risk retention and due diligence requirements under CRD IV. The move poses significant questions for future CLO issuances in Europe and the position of existing CLO transactions.

The weekly financial services update discusses The Financial Conglomerates Regulations 2013; the final compromise texts of the Capital Requirements Directive; MiFID II and MiFIR compromise text; the Recovery and Resolution Directive; hedge funds in institutional investor portfolios; and more.

HMRC have been focusing on LLPs using corporate members to reduce income tax liabilities. The consultation document now makes it clear that HMRC propose to stop all corporate member planning where one of the purposes of the planning is to reduce or defer income tax liabilities.

Dealing with another party's breach of contract or negligence can be a time-consuming process, involving the diversion of management and other staff from their normal revenue-generating activities. However, a recent case demonstrates the extent to which the court is willing to offer compensation.

Macfarlanes discusses the implementation of the AIFMD; the EU Directive and Regulation amending rules on credit rating agencies; UCITS V; the proposed Recovery and Resolution Directive; long term investment financing by institutional investors; Banking Reform Bill; and Personal Current Accounts.

A dividend recap involves a portfolio company obtaining new financing in the loan/bond markets to fund a return to its investors. Dividend recaps have been much commented on recently and have become a regular feature in deal flows this year. Macfarlanes highlights some key features and issues.

Since their introduction in 2000, the LLP has developed into the management/advisory vehicle of choice in the independent asset management industry. However, HMRC clearly believe these advantages have been pushed too far and are now intent on stopping some or all of the arrangements.