McDermott Investment Funds Academy AML, DORA, LMT & Co – Update & Outlook 2025
Our McDermott Investment Funds Academy online seminar took place on March 26. Our experts from the Investment Funds & Regulatory Law practice groups – as well as experts from the Luxembourg law firm Arendt & Medernach – gave an outlook on regulatory developments in 2025. The following topics were covered, among others:
- LMTs & Side Pockets – Practice in Germany & Luxembourg
- AML: New developments in money laundering law
- DORA compliance
The online seminar was aimed at employees of [...]
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Crypto funds in Germany – What depositaries and asset management companies (probably) will need to consider
The entry into force of the Future Financing Act (Zukunftsfinanzierungsgesetz) already marked the birth of “crypto funds” in Germany in 2023 by enabling direct investment in crypto-assets for mutual funds (within the meaning of Sections 221 and 261 KAGB). With the Financial Market Digitisation Act (Finanzmarktdigitalisierungsgesetz), which entered into force at the end of 2024, this idea has now been completed considering the background of MiCAR with a reference to its concept of crypto-assets.
Since an investment in crypto-assets is associated with new, specific risks, BaFin has put the first draft of a circular on the Obligations of depositaries and [...]
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McDermott Investment Funds Academy – AML, DORA, LMT & Co – Update & Outlook 2025
We cordially invite you to our online seminar of the McDermott Investment Funds Academy on March 26th from 9:30 to 10:30 AM. Our experts from the Investment Funds & Regulatory Practice Groups, as well as experts from the Luxembourg law firm Arendt & Medernach, will provide you with an outlook on regulatory developments in 2025. Among other topics, we would like to discuss the following with you:
- LMTs & Side Pockets – Practice in Germany & Luxembourg
- AML: New Developments in Anti-Money Laundering Law
- DORA Compliance
The online seminar is aimed at employees of fund initiators and sponsors, [...]
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M&A in the EU market: Essential factors for investors to consider
Investing in Europe: Is it a good time to do so? Opinions differ. The EU financial sector has experienced significant growth in recent years, driven by technological advancements and evolving consumer preferences, but there is also heavy regulation. Despite the downsides of a high degree of regulation, such as increased costs, inflexibility, many internal guidelines, and a higher number of employees, it also has a positive effect on the overall market and economic opportunities.
Financial regulation ensures stability, transparency, and consumer protection. Especially in the financial industry, these are key aspects customers look at, considering the major failures we have [...]
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MiCAR in Practice: BaFin Issues Guidance on Crypto Services
At the beginning of the year, the German Federal Financial Supervisory Authority (“BaFin“) released a guidance document on crypto-asset services under the new EU Regulation on Markets in Crypto-Assets (“MiCAR“). This regulation has been directly applicable to crypto service providers in the EU since December 30, 2024.
The guidance provides clarifications on the licensing requirements for crypto services and the obligations for providers. Key points include:
- Definitions of Crypto Services: BaFin specifies which crypto services are subject to licensing and connects these to the well-established investment services under MiFID II.
- Licensing of Crypto-Asset Service Providers: The guidance includes [...]
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EMIR 3: Active Accounts, clearing threshold and exemptions
EMIR 3 introduces a requirement for certain EU counterparties to open and maintain an account with a central counterparty (“CCP”) established in the EU, and makes targeted amendments relating to the clearing thresholds and certain exemptions.
Origins of EMIR 3
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An Overview of the New Consumer Credit Directive
One year after the new EU Consumer Credit Directive (Directive 2023/2225) came into force, questions remain: When will it be implemented? What will be regulated? How is the business community reacting? The directive brings significant changes and extensions in an effort to strengthen consumer protection and meet the challenges of digitization. But does it really provide consumers with the desired added value and protection, or does it prevent innovative, successful business models – from which consumers benefit – via overregulation?
Key Contents of the Directive
The new directive significantly expands the scope of application for consumer credit and covers [...]
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Navigating EU Sanctions: How Investment Funds and Corporates Can Meet the ‘Best Efforts’ Standard
Co-Authors: Raminta Dereskeviciute | Sabine Naugès | Michal Chajdukowski | Ludovica Rabitti
With the introduction of the 14th sanctions package, entities established in the European Union are required to ‘undertake their best efforts to ensure’ that non-EU subsidiaries they own or control do not undermine EU Regulation 833/2014 imposing EU sanctions against Russia, or EU Regulation 765/2006 imposing EU sanctions against Belarus. This obligation stretches to EU citizens, including those located outside the European Union, who control corporate and fund structures around the world.
The term ‘best efforts’ is not explicitly [...]
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The DORA Deadline – How to prepare, and how to use legal AI for DORA contract review
Financial Services (FS) firms need to comply with the EU’s new Digital Operational Resilience Regulation (DORA) until January 17, 2025. Compliance isn’t optional, it’s the law.
In this webinar, we spoke about what DORA meant for clients and how to use legal AI for contract review and remediation.
The following topics were discussed:
- What DORA is and who it applies to
- What Financial Services firms need to do before January 2025
- What contract review and remediation work needs to be done
- How McDermott uses legal AI with BRYTER Extract for DORA contract review and remediation.
You can find [...]
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DORA Check
Digital threats and cyberattacks are increasing every year. In 2023, digital threats caused damages of more than €200 billion in Germany, of which 72% resulted from cyberattacks (source: Bitkom, study on economic protection 2023). To counter the threat to the system-critical financial sector, the EU has decided to implement a uniform, high level of security. The Digital Operational Resilience Act (DORA) is the answer.
The regulation on digital operational resilience is intended to reduce the risks arising from the ever-increasing dependence on information and communication technology in the financial sector. In particular, DORA is expected to reduce the risk [...]
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