Regarding the ongoing review of AIFMD, Zwick confirmed that this is likely have an impact on Ucits, “as the push is to have one framework going forward, especially in terms of governance.” He highlighted how this could lead to a substantial reassessment of these directives. “My humble view is--and I know not everyone has the same view at the European level--is that you should not mix up product and manager regulations. But there is a risk this may happen,” he said.

As for delegation of activities by European funds to service providers outside the EU, he said that “this should not be the main topic of discussion”. This question is a live one as there is a political temptation at EU level to restrict easy access to the services of UK-based asset managers. This could potentially upset many current working relationships enjoyed by the Luxembourg fund industry, where about one-fifth of funds are managed out of the UK. “If there is a debate to be had, it’s maybe about oversight rather than the concept of delegation per se,” Zwick said on 18 March.

On anti-money laundering, he noted the advent of so called “AML colleges” designed to improve cooperation between authorities. He said these will become a feature for fund companies and for the CSSF, for which “setting up some of these colleges and participating will be priority.”

This year will also see reviews of regulatory circulars. This will including the AML aspects of 18/698, the ESG impact on governance and risk management within 12/512, 02/77 will be updated, and a new central administration circular will possibly replace the venerable 91/75.