Navigating Regulatory Changes: Legal Rule Sets Singapore and ELTIF 2.0

Introduction

In the ever-evolving landscape of financial regulations, staying ahead of the curve is crucial for asset managers and investment professionals. In this article, we delve into the recent developments surrounding Legal Rule Sets.

New Legal Rule Set for Singapore: Navigating local waters

In response to the unique demands of Singapore’s financial landscape, SimCorp’s Legal Rule Sets Team has taken significant strides. Our mission? To bolster the offering by creating a new Legal Rule Set specifically tailored for Singapore. This marks a pivotal moment as Singapore becomes the 11^th country to be covered by SimCorp’s comprehensive regulatory framework.

The nuanced approach

Singapore’s financial ecosystem is dynamic, multifaceted, and ever evolving. To navigate this complexity, the Legal Rule Sets Team has meticulously crafted rules that align with the intricacies of the local market. Based on the Code on Collective Investment Schemes, these rules address the unique challenges faced by fund managers, ensuring compliance with regulatory requirements.

The role of SimCorp’s Legal Rule Set Service

SimCorp’s Legal Rule Set Service is a powerful tool designed to empower fund managers. Initially launched for Germany, Luxembourg, and Switzerland, it now extends its reach to Singapore. Here is how it works:

1. Immediate notifications: Whenever new rules or changes emerge; the Legal Rule Set Team promptly notifies fund managers (SimCorp’s clients). This ensures that they stay informed about regulatory updates that impact their operations.
2. System updates (change items): Compliance is not static. As regulations evolve, so must the systems that support it. The Legal Rule Set Team alerts their clients about necessary system upgrades (changes to the regulatory rules configured in Compliance Manager), allowing them to adapt swiftly and maintain compliance.
3. Adherence to Legal Rule Sets: By integrating these rules into their workflows, fund managers can confidently navigate the regulatory landscape. The Legal Rule Set Service acts as a compass, guiding them toward compliance.

ELTIF 2.0: Democratizing private markets

Unlocking opportunities

The European Long-Term Investment Fund (ELTIF) regime has undergone a significant transformation with the introduction of ELTIF 2.0. This revamped framework, effective since January 2024, aims to democratize private markets by providing private investors with access to real assets while maintaining elevated levels of investor protection. Key changes include:

1. Investment minimums removed: ELTIF 2.0 eliminates investment minimums, making it more accessible for a broader range of investors.
2. Retail investor marketing: The new regime allows marketing directly to retail investors, expanding the investor base.
3. Broadened investment definitions: ELTIF 2.0 broadens the scope of eligible investments, including assets related to the environment, education, intellectual property, and infrastructure projects.

Legal Rule Sets Team updates

Our Legal Rule Sets Team has been diligently updating the existing rule sets configured in SimCorp’s Compliance Manager. Earlier this year, a related Change Item was published, reflecting the alignment of our rule sets with the ELTIF 2.0 regulation. These updates ensure that our clients remain compliant with the latest regulatory requirements while optimizing operational efficiency.

Conclusion

As the regulatory landscape evolves, SimCorp’s Legal Rule Sets remain agile and adapt standardized rules’ library to the changes. Whether navigating ELTIF 2.0 or tailoring solutions for specific markets, our commitment to excellence ensures compliance and efficiency.

Stay informed, stay compliant, and stay ahead with SimCorp Legal Rule Sets.

For more information, please contact Legal Rule Sets Team directly at [email protected].