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Latest wave of regulation could create challenges for the offshore funds industry 

June 26, 2015

James Qualtrough, Guernsey News

The next implementation phase of the new European Market Infrastructure Regulation (EMIR) from the European Securities and Markets Authority (ESMA) could be a riptide that creates challenges for the offshore funds industry if businesses do not understand the potential impact and do not take steps to prepare.

The European Union regulation on derivatives, central counterparties and trade repositories introduces new requirements to improve transparency and reduce the risks associated with the derivatives market. It also establishes common organisational, conduct of business and prudential standards for CCPs and trade repositories.

In a bid from the EU to improve transparency and reduce the risks associated with the derivatives market in the wake of the 2008 financial crisis, EMIR imposes requirements on all types and sizes of entities that enter into any form of derivative contract, including those not involved in financial services given ESMA’s broad definition of what constitutes a derivative.

Read more: Guernsey News

 
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