- New EU Pass-Border Distribution of Finances Directive and Legislation
- EU Quick Promoting Legislation
- EU ESG
- EU Funding Company Legislation (IFR)
- EU Marketplace Abuse
- EU MiFID II
- EU Securitisation Legislation (SECR)
- EU Cloud Provider Suppliers Pointers
- UK PRIIPs Legislation
- UK FCA Compliance Issues
- UK Regulatory Projects Grid
- UK Lengthy-Time period Asset Finances (LTAFs)
- LIBOR Transition
1. New EU Pass-Border Distribution of Finances Directive and Legislation
New AIFMD regulations on pre-marketing and imaginable affect on non-EU managers
Beginning 2 August 2021, a brand new framework when it comes to the cross-border distribution of funding budget within the EU is needed to be applied in EU Member States. Amongst different issues, the brand new regulations amend the present EU Choice Funding Fund Managers Directive (AIFMD) to harmonise the power of EU choice funding fund managers (AIFMs) to distribute their budget (AIFs) around the EU, together with by means of introducing a brand new regime for “pre-marketing,” which in flip has implications for “opposite solicitation.”
Please see our Sidley Replace EU AIFMD — New Regulations at the Pass-Border Distribution of Finances (printed on 8 June 2021) for the results of the brand new EU cross-border distribution of collective funding budget regime for non-EU managers.
ESMA publishes ultimate file and tips for budget’ advertising and marketing communications
On 27 Would possibly 2021, the Ecu Securities and Markets Authority (ESMA) printed its ultimate file on tips for budget’ advertising and marketing communications below the CBDF Legislation (the Pointers).
The Pointers observe extensively to EU AIFMs and Undertakings Collective Funding in Transferable Securities (UCITS) control corporations, that are undertaking advertising and marketing verbal exchange with traders or doable traders in UCITS or AIFs. It’s unclear at this level whether or not non-EU AIFMs undertaking advertising and marketing verbal exchange with EU-based traders could be required to conform to the Pointers.
The Pointers set prescriptive content material and formatting necessities for a significantly in depth vary of promoting communications, together with:
- all messages promoting for a UCITS or AIF, without reference to medium (i.e., together with revealed paperwork in addition to video shows, are living shows, and radio messages);
- messages on any social media platform; and
- communications by means of a 3rd celebration and utilized by a UCITS control corporate or AIFM for advertising and marketing functions.
The Pointers require, amongst different issues, that each one advertising and marketing communications be identifiable as such and include truthful, transparent, and no longer deceptive knowledge, without reference to the objective traders. The guidelines offered within the advertising and marketing verbal exchange will have to even be in line with knowledge contained within the criminal and regulatory paperwork of the promoted fund, together with in terms of AIFs, the Article 23 AIFMD pre-investment disclosures, and the AIF’s annual studies.
The Pointers will observe six months after newsletter on ESMA’s web page in all EU respectable languages and might be enforced by means of EU nationwide competent government.
2. EU Quick Promoting Legislation
ESMA recommends reducing the reporting threshold for web quick positions to 0.1% on an enduring foundation
On 20 Would possibly 2021, ESMA printed an opinion recommending that the reporting threshold for web quick positions in stocks below Article 5 of the EU Quick Promoting Legislation (EU SSR) will have to be reduced from 0.2% (the brink specified within the EU SSR) to 0.1% completely.
In March 2020, ESMA diminished the web quick place reporting threshold for stocks admitted to buying and selling on a regulated marketplace from 0.2% to 0.1% quickly in accordance with the COVID-19 pandemic. The 0.1% threshold carried out from 16 March 2020 to 19 March 2021, as famous in our April 2021 Replace; from 19 March 2021 the brink reverted to and has been held at 0.2%.
ESMA considers that the proof accumulated because the decrease threshold used to be presented supplied an excessive amount of further and crucial knowledge to EU nationwide competent government, taking into consideration higher marketplace oversight. ESMA recommends a go back to this place in mild of the uncertainty of the present economic marketplace stipulations.
Because of the urgency of the placement, ESMA has determined to not publicly seek the advice of in this exchange, recommending that the Ecu Fee undertake the proposal once imaginable.
Be aware that since 1 February 2021, the reporting threshold for web quick positions in in-scope stocks below the United Kingdom Quick Promoting Legislation has been 0.1%.
ESMA publishes up to date web quick place notification thresholds for sovereign issuers
On 8 June 2021, ESMA printed an up to date desk of reporting thresholds for web quick place in sovereign debt.
ESMA is needed to put up, below the EU SSR, a listing of the thresholds acceptable to the sovereign issuers for the aim of the notification to competent government of vital web quick place in sovereign debt.
3. EU ESG
Ecu Fee consults on draft delegated legislation for sustainability disclosures below EU Taxonomy Legislation
On 7 Would possibly 2021, the Ecu Fee printed a session on a draft delegated legislation (the Delegated Legislation) that dietary supplements the disclosure duties contained in Article 8 Taxonomy Legislation, specifying the content material, technique, and presentation of data that positive huge economic and non-financial undertakings will have to expose regarding their environmentally sustainable financial actions.
Article 8(1) Taxonomy Legislation calls for economic or non-financial endeavor in scope of the Non-Monetary Reporting Directive (NFRD) to publicly expose knowledge on how and to what extent their actions are related to environmentally sustainable financial actions.
Undertakings which are in scope of the NFRD are, extensively, EU indexed entities, EU asset managers, credit score establishments, insurance coverage undertakings, and entities designated as such by means of an EU Member State that experience greater than 500 workers. As famous in our Would possibly 2021 Replace, the Fee has followed an offer to increase the scope of the NFRD to all huge corporations and all corporations indexed at the EU regulated markets.
Session at the Delegated Legislation closed on 2 June 2021, and Fee adoption is predicted by means of the top of June. The Delegated Legislation will observe absolutely from 1 January 2023, with most effective positive components and qualitative reporting anticipated to return into impact 1 January 2022.
The Delegated Legislation might be of hobby to EU and non-EU funding managers who’re “economic marketplace members” below the Sustainable Finance Disclosure Legislation (SFDR), given positive of the ones managers might wish to gather information from such huge entities for functions of complying with their very own disclosure duties below the SFDR.
ESMA EU funding fund climate-related economic possibility overview
On 8 June 2021, ESMA printed its first Developments, Dangers and Vulnerabilities (TRV) Document of 2021.
ESMA continues to spot very prime dangers right through its remit. On this file, it highlights the numerous rebound of the EU fairness markets and the valuation of debt indices, which it notes reached pre-crisis ranges throughout all segments and contrasts with the susceptible financial basics.
ESMA sees this ongoing decoupling as the primary possibility for EU economic markets, in addition to volatility within the costs of non-regulated cryptoassets, which it notes implies important dangers for traders.
Of specific word, the file comprises ESMA’s first overview of EU funding budget’ publicity to climate-sensitive financial sectors. ESMA notes that while plenty of efforts had been made to habits climate-related economic possibility tests of the Ecu banking and insurance coverage sectors, there was little identical research of the Ecu funding fund.
The use of a knowledge set of €10.7 trillion of Ecu funding fund portfolio holdings from 23,352 EU-domiciled funding budget, ESMA discovered the next:
- EU funding budget are extra uncovered to climate-sensitive financial sectors than banks, insurers, and pension budget.
- EU budget whose portfolios are tilted against extra polluting property (brown budget) distribute their portfolio over a bigger selection of corporations than budget with cleaner portfolios (inexperienced budget).
- Then again, this obvious diversification hides a focus possibility: Brown budget are extra intently hooked up with every different (have extra identical portfolios) than inexperienced fund portfolios, which have a tendency to ‘herd’ much less (have much less identical portfolios to these of alternative inexperienced budget). Therefore, well-liked climate-related economic shocks are more likely to disproportionately impact brown budget.
- A initial weather possibility situation workout suggests maximum brown budget’ losses vary from about 9% to 18% of affected property, by contrast to inexperienced budget’ losses, which in most cases vary from 3% to eight%.
- Accordingly, ESMA’s overview notes that if climate-related economic dangers impact brown corporations greater than inexperienced corporations, and plenty of EU fund portfolios obese brown corporations, then this means that climate-related shocks will impact extra EU budget.
The TRV file comprises further detailed analyses of marketplace possibility within the securities markets, infrastructures and services and products, sustainable finance, and monetary innovation in addition to a file available on the market for ESG rankings, together with varieties of rankings, key suppliers, and problems referring to a loss of commonplace definitions and of comparison.
4. EU Funding Company Legislation (IFR)
EBA and ESMA put up provisional checklist of tools and budget for the smallest funding corporations below the EU IFR
On 31 Would possibly 2021, ESMA and the Ecu Banking Authority (EBA) printed a provisional checklist of extra tools and budget that EU competent government might permit to make use of as personal budget for small and non-interconnected funding corporations (SNI corporations) and non-SNI corporations that don’t seem to be criminal individuals or joint inventory corporations.
The EBA, in conjunction with ESMA, is needed below Article 9(4) of the IFR to determine, take care of, and put up a listing of all of the sorts of tools or budget in every EU Member State that qualify as personal budget for SNI corporations and non-SNI corporations that don’t seem to be criminal individuals or joint inventory corporations.
The checklist is provisional and meant to supply steering to funding corporations and competent government forward of the applying of the IFR necessities, as of 26 June 2021. Please see our Sidley Replace New EU Funding Company Prudential Regime for additional knowledge at the regime.
Be aware that the United Kingdom might be introducing its personal Funding Company Prudential Regime (IFPR). For more info in regards to the IFPR, please see our Sidley Replace UK Funding Company Prudential Regime – FCA’s 2nd Session – Implications for Funding Managers.
5. EU Marketplace Abuse
French AMF fines a German corporate and its CEO for manipulating the cost of a sovereign bond futures contract
On 28 Would possibly 2021, the Autorité des marchés financiers (AMF) fined International By-product Buying and selling GmbH (GDT) and its CEO, Thorsten Wagner, €1.2 million for manipulating the cost of a French sovereign bond futures contract.
Between 1 July and 13 October 2015, GDT issued orders on Eurex for futures contracts with French fungible Treasury bonds because the underlying asset (FOAT).
The AMF discovered that GDT had positioned orders that gave deceptive indicators as to the provision of, call for for, and worth of the FOAT via issuing passive orders for important and extraordinary amounts of contracts, which created robust force on one facet of the order e-book on the 3 perfect limits, in flip developing doubt as to the truth of provide and insist, prior to the mass cancellation of those orders.
In assessing the effective, the AMF thought to be the seriousness of the breaches, the volume of benefit made, estimated at nearly €340,000, and the bias for different marketplace members who suffered from the unfair buying and selling stipulations at the FOAT.
6. EU MiFID II
ESMA publishes ultimate file on draft tips on marketplace information duties
On 1 June 2021, ESMA printed its ultimate file containing finalised tips at the EU MiFIR marketplace information duties.
The overall file follows ESMA’s session paper of 6 November 2020 (which we lined in our December 2020 Replace) on draft tips referring to the requirement to put up marketplace information on an affordable industrial foundation and make marketplace information to be had without cost quarter-hour after newsletter below EU MiFIR.
The information will observe to (amongst others) EU buying and selling venues, authorized newsletter preparations, and systematic internalisers (in combination, Marketplace Knowledge Suppliers).
While funding managers might not be without delay topic to the information, the information might ultimately have a favorable impact on how managers generally eat information from EU marketplace information suppliers and on better transparency on the subject of information prices.
To that finish, the information require Marketplace Knowledge Suppliers to (amongst different issues):
- marketplace information at the foundation of price;
- supply marketplace information on a non-discriminatory foundation; and
- tell consumers that the acquisition of marketplace information is to be had one after the other from further services and products (‘information unbundling’).
The information will observe from 1 January 2022.
ESMA publishes new Q&A on prices and costs
On 28 Would possibly 2021, ESMA printed an up to date model of its Q&As on MiFID II and MiFIR investor coverage and intermediaries subjects. It comprises an extra query on when a company offering each funding recommendation and reception and transmission / execution services and products to a consumer when it comes to the similar transaction(s) will have to supply ex-ante knowledge on prices and costs.
ESMA confirms the requirement to tell the buyer about all prices and costs in just right time prior to the availability of funding recommendation applies regardless of whether or not the buyer is therefore supplied with an RTO or execution provider when it comes to the similar transaction(s).
Then again, ex-ante price and costs knowledge disclosed to the buyer when the funding recommendation is supplied would no longer wish to be supplied a 2d time within the context of the following RTO or execution provider only if:
- each services and products relate to the similar transaction(s) and are supplied inside of a quite quick period of time; and
- the ex-ante price and costs knowledge remains to be correct and entire on the time of the availability of the RTO or execution provider.
7. EU Securitisation Legislation (SECR)
ESAs put up joint file at the implementation and functioning of the SECR
On 17 Would possibly 2021, the ESAs printed a joint committee file (the Document) containing its research of the implementation and functioning of the SECR. This follows the ESAs’ contemporary joint opinion (the Opinion), which drew consideration to the uncertainties round whether or not non-EU AIFMs fell throughout the “institutional investor” definition below the SECR and had been due to this fact topic to due diligence necessities (for additional main points at the Opinion, please see our April 2021 Replace).
The Document echoes the Opinion on the subject of the imprecision of the “institutional investor” definition and recommends that the Fee amend the SECR or supply interpretative steering as proposed within the Opinion; the Document does no longer suggest any amendments past the ones really useful within the Opinion.
8. EU Cloud Provider Suppliers Pointers
ESMA publishes ultimate tips on outsourcing to cloud provider suppliers
On 10 Would possibly 2021, ESMA printed ultimate tips on outsourcing to cloud provider suppliers (the CSP Pointers). The CSP Pointers observe to a huge vary of economic establishments, together with AIFMs and linked depositaries, UCITS control corporations and linked depositaries, and MiFID funding corporations.
The CSP Pointers are silent on whether or not non-EU AIFMs advertising and marketing AIFs within the EU are stuck, despite the fact that references are made to quite a lot of provisions within the AIFMD and the linked delegated legislation that observe most effective to EU AIFMs and no longer additionally to non-EU AIFMs.
The CSP Pointers set out:
- the governance, documentation, oversight, and tracking mechanisms that corporations will have to have in position;
- the overview and due diligence that are supposed to be undertaken previous to outsourcing;
- the minimal components that outsourcing and sub-outsourcing agreements will have to come with;
- the go out methods and the get right of entry to and audit rights that are supposed to to be catered for;
- the notification to competent government; and
- the supervision by means of competent government.
The CSP Pointers observe from 31 July 2021 to all cloud outsourcings preparations entered into, renewed, or amended on or after this date. Relating to present cloud outsourcing preparations, in-scope corporations are required to make certain that such present preparations take note the CSP Pointers by means of 31 December 2022.
9. UK PRIIPs Legislation
HM Treasury pronounces extension of PRIIPs exemption for UCITS budget
On 1 June 2021, HM Treasury introduced that the present exemption for UCITS budget from the necessities of the United Kingdom Packaged Retail Funding and Insurance coverage-Based totally Merchandise (UK PRIIPs) Legislation might be prolonged by means of 5 years to 31 December 2026.
UCITs budget are lately exempt from the necessities of the United Kingdom PRIIPs Rules. As such, UCITS budget don’t seem to be lately required to supply a UK PRIIPS Key Knowledge File (KID). As a substitute they will have to produce a UCITS Key Investor Knowledge File (KIID), as in line with the necessities of the EU UCITS Directive as transposed in the United Kingdom. This exemption expires on 31 December 2021. This announcement is designed to supply walk in the park for business and traders in regards to the disclosures UCITS budget suppliers should make to retail traders past 2021.
HM Treasury additional notes that adjustments to the United Kingdom PRIIPs Legislation is also made, or a successor legislation is also presented quicker than 2026, during which case attention could be given to a easy transition to the brand new regime for all retail funding product suppliers, together with the ones advertising and marketing UCITS budget.
FCA publishes speech on the United Kingdom regulatory panorama post-Brexit
On 6 Would possibly 2021, the Monetary Behavior Authority (FCA) printed a speech by means of CEO Nikhil Rathi discussing legislation and festival in UK markets and the way the FCA will use the United Kingdom’s larger flexibility post-Brexit. The next issues had been thought to be:
- Legislation and festival in UK markets. Whilst the FCA will observe the similar regulations, requirements, and threshold stipulations to global corporations searching for authorisation as they might to home corporations, global corporations pose extra possibility to shoppers, purchasers, and markets and will due to this fact be expecting proportionately nearer scrutiny and better expectancies. As such, global corporations require structural preparations enabling the FCA to oversee them successfully, and the FCA expects corporations searching for authorisation to have an lively workplace in the United Kingdom. The place EU corporations get right of entry to UK markets by way of the Brief Permissions Regime (TPR), the FCA will perform a rigorous assessment of all corporations searching for to go into the United Kingdom authorisation gateway. The FCA reminds corporations that the place they have got observed misconduct, they have got taken motion to take away corporations from the TPR to steer clear of hurt to UK markets or shoppers.
- The use of the FCA’s larger flexibility. The FCA recognises the larger flexibility to be had to the United Kingdom following go out from the EU and can use its autonomy to keep watch over for the good thing about UK economic markets and shoppers. The FCA recognises that divergence will impact doable EU equivalence, despite the fact that the FCA is not going to pursue equivalence at the price of failing to fortify UK markets and references the not too long ago introduced proposed adjustments to the MiFID regulations on analysis and perfect execution reporting for instance of such enhancements (for additional main points in this session, please see our Would possibly 2021 Replace).
- International regulatory problems. Different key spaces of center of attention in global legislation come with ESG and the sustainability schedule, and coping with economic crime.
11. UK FCA Compliance Issues
FCA publishes Marketplace Watch factor 67
On 28 Would possibly 2021, the FCA printed Factor 67 of Marketplace Watch, its e-newsletter on marketplace habits and transaction reporting problems.
The FCA explains that it makes use of the order e-book information of key UK fairness buying and selling venues to spot suspected marketplace manipulation. The FCA assesses the controls of all buying and selling venues and corporations to make sure that they have got efficient surveillance preparations and file suspicious process as required, and might make knowledge requests for orderbook information to give a boost to enquiries.
Such surveillance has ended in figuring out doable manipulative buying and selling, which is then investigated additional: In contemporary instances, non-enforcement results had been reached on the subject of the affect available on the market of the buying and selling of an algorithmic buying and selling company, and enforcement results had been effectively pursued for marketplace abuse towards Adrian Horn, as famous in our March 2021 Replace.
FCA pronounces that earlier information assortment platform has now been changed
On 5 Would possibly 2021, the FCA introduced that its earlier information assortment platform, Gabriel, were changed by means of its new platform, RegData.
Whilst the brand new platform is meant to seem very similar to Gabriel, and there might be no exchange to the best way corporations lately supply information to the FCA, the FCA notes that RegData is quicker, extra out there, and will also be extra simply maintained and upgraded.
12. UK Regulatory Projects Grid
On 7 Would possibly 2021, the United Kingdom Monetary Services and products Regulatory Projects Discussion board (the Discussion board, which contains the FCA) issued the most recent model of the Regulatory Projects Grid (the Grid) atmosphere out key UK economic services and products regulatory tasks over a 24-month horizon (see the FCA’s remark right here). This can be a helpful reference file to test the expected time frame for reforms specifically spaces, together with funding control, anti-money-laundering, marketplace abuse, LIBOR transition, and cryptoassets.
As famous in our June 2020 Replace, the Grid might be printed two times a 12 months. The Grid used to be first printed in Would possibly 2020 and centered at the delays and cancellations to tasks taken in view of the COVID-19 pandemic. As began with the September 2020 version, the latest model continues with a extra conventional center of attention on upcoming tasks.
The Grid expects the United Kingdom IFPR to be presented by means of 1 January 2022, with FCA regulations and vital secondary law in position prior to then. Please see our Sidley Replace UK Funding Company Prudential Regime – FCA’s 2nd Session – Implications for Funding Managers (referred in merchandise 4 above).
13. UK Lengthy-Time period Asset Finances (LTAFs)
FCA publishes session on LTAFs
On 7 Would possibly 2021, the FCA printed a session paper on a brand new UK accepted fund regime for making an investment in long-term property. Noting that UK traders most often spend money on illiquid property via closed-ended constructions, the FCA proposes to create a brand new class of fund known as LTAFs, which might be open-ended and spend money on long-term, illiquid property reminiscent of challenge capital, non-public fairness, non-public debt, actual property, and infrastructure.
The FCA proposes that LTAFs might be AIFs with the next options:
- The control of LTAFs might be limited to full-scope UK AIFMs that meet further necessities. Specifically, the FCA will be expecting such AIFMs to reveal that they have got enough related experience to control LTAFs.
- LTAFs may have large funding flexibility, together with the power to spend money on positive loans and collective funding schemes; the FCA does no longer plan to set any particular diversification necessities past an overarching requirement that LTAFs have a prudent unfold of possibility. LTAFs might borrow as much as 30% of web property.
- The FCA will be expecting that greater than 50% of the worth of the LTAF to be invested in unlisted securities or different long-term property (or collective funding schemes making an investment in such property).
- Distribution of LTAFs will to start with be limited to skilled traders and complex retail traders, despite the fact that the FCA is thinking about making LTAFs to be had to a much wider investor base.
The session closes on 25 June 2021. The FCA intends to put up a last coverage remark and ultimate manual regulations later this 12 months.
14. LIBOR Transition
FCA and Financial institution of England put up remark encouraging transfer to SONIA
On 13 Would possibly 2021, the FCA and Financial institution of England printed a remark encouraging marketplace customers and liquidity suppliers within the sterling exchange-traded derivatives marketplace to modify the default-traded device from LIBOR to the sterling in a single day index moderate (SONIA) from 17 June 2021.
This paperwork a part of the trouble to fulfill the Running Crew on Sterling Chance-Unfastened Reference Charges’ advice to stop the initiation of recent GBP LIBOR exchange-traded derivatives expiring after 2021 by means of the top of Q2, 2021.
FCA consults on new powers to give a boost to orderly wind-down of important benchmarks
On 20 Would possibly 2021, the FCA printed a session paper on its proposed use of 2 new powers below the United Kingdom Benchmarks Legislation (BMR) when it comes to the wind-down of LIBOR, which might be presented by means of the Monetary Services and products Act 2021.
The primary energy permits the FCA to designate a benchmark as completely unrepresentative of the put it on the market is meant to measure. This leads to an automated prohibition on the usage of the benchmark by means of UK supervised entities, despite the fact that the FCA might allow some or all legacy use to proceed.
In issuing this sort of permission, the FCA may have regard for whether or not the legacy contracts include ok provisions to handle a prohibition and are of such scale and nature that they may have client coverage and marketplace integrity implications. That is specifically related will have to the FCA require persisted newsletter of LIBOR on a “artificial” foundation with a purpose to lend a hand with some LIBOR contracts which are particularly tricky to amend (the FCA will quickly seek the advice of on the use of powers below the BMR to enforce a “artificial LIBOR” fee for some sterling and yen LIBOR settings). As artificial LIBOR might be prima facie completely unrepresentative, it’ll be robotically prohibited.
The second one energy permits the FCA to limit the brand new use of a ceasing important benchmark. In a similar fashion, the FCA shall believe the affect on their client coverage and integrity targets and shall limit the usage of related benchmarks most effective the place those targets are promoted.
The FCA will finalise its insurance policies in mild of comments at the session. The FCA objectives to seek the advice of in Q3 2021 on its proposed choices on exactly what legacy use to permit for any artificial sterling and yen LIBOR charges and the way it will limit new use of LIBOR charges (together with U.S. greenback LIBOR), coming to a last resolution once practicable in This autumn.
Brief Registration Regime prolonged for cryptoasset companies
On 3 June 2021, the FCA introduced an extension to the top date of the Brief Registrations Regime (TRR) for cryptoasset companies from 9 July 2021 to 31 March 2022.
The TRR permits present cryptoasset corporations that carried out for registration prior to 16 December 2020, and whose programs are nonetheless being assessed, to proceed buying and selling.
The FCA notes that the extension will permit cryptoasset corporations to proceed buying and selling whilst the FCA carries on its tough overview of candidates’ compliance with the necessities of the United Kingdom Cash Laundering Rules.
Regulation Fee launches name for proof on virtual property
On 30 April 2021, the Regulation Fee printed a choice for proof (the Name for Proof), searching for perspectives at the techniques virtual property are being utilized by marketplace members and at the doable penalties of constructing virtual property “possessable.”
The Name for Proof paperwork a part of the Regulation Fee’s overarching virtual property venture, which comes to making suggestions for reform to make certain that English legislation is able to accommodating transactions involving virtual property (like cryptoassets).
The Name for Proof seeks proof on perspectives on quite a lot of problems, together with ownership and transferability of virtual property and use of safety over virtual property.
The Name for Proof closes on 30 July 2021, and the responses will tell the Regulation Fee’s proposals for reform, which it’ll put ahead in its session paper on virtual property.