Latest news with #EaseOfDoingBusiness
Bloomberg
09-07-2025
- Business
- Bloomberg
June Global Regulatory Brief: Risk, capital and financial stability
SEBI enables co-investment within the AIF structure, replacing the PMS detour The Securities and Exchange Board of India (SEBI) approved reforms that let Category I and II Alternative Investment Funds (AIFs) invite their own accredited investors to co-invest inside the fund itself through a newly-minted Co-Investment Scheme (CIV scheme). Background context: The change follows the May 2025 consultation paper and the recommendations of the Ease-of-Doing-Business working group and the AIF Policy Advisory Committee. In more detail: Under the earlier framework, any investor wishing to top-up an AIF's position had to do so through a separate Portfolio Management Services (PMS) account. That arrangement forced managers to hold dual licenses, imposed PMS investment caps on unlisted securities, and left investee companies grappling with a long tail of direct shareholders. Exit timing could also diverge, because PMS clients were free to sell before the AIF, upsetting alignment of interests. What has changed: The new policy sweeps those frictions aside. An AIF may now launch one dedicated CIV scheme for every co-investment it undertakes. Participation is limited to accredited investors already committed to the parent AIF scheme, preserving the fund's investor-of-record status on the target's cap table. CIVs inherit the Category I or II label of the main fund yet enjoy targeted regulatory relief: they are exempt from diversification limits, sponsor-commitment requirements and the three-year minimum tenure rule. Exit remains co-terminous with the main AIF, ensuring that co-investors and pooled investors realise returns side-by-side. Looking ahead: Based on approval by the SEBI Board, the above changes would be effective post suitable notification of amendments to the framework. ECB analyses bank exposure to private market funds The Chair of the European Central Bank Supervisory Board, Claudia Buch, set out in further detail the implications of growing banking sector exposure to private market funds. Wider context: The ECB understands growing bank involvement in opaque and illiquid private markets as a potential transmission channel for systemic risk, especially under stress scenarios. The ECB is concerned by the lack of reliable and consistent data within private markets, the lighter disclosure requirements, and the typically illiquid nature of the investments. Important risk metrics – such as default histories, loss and recovery rates, and asset valuations – are often unavailable or hard to compare and this is leading to sub-standard supervision. ECB aim: The ECB is seeking to achieve more consistent and transparent reporting by providers of private equity and private credit, recognising that while this may increase the cost of doing business it should enhance risk management and broader financial stability. ECB findings – in more detail: The ECB Banking Supervision has found that a few specialised and larger banks engage with private equity and private credit funds through a wide range of financing relationships, including: Banks lend directly to funds, to fund investors and to the companies held in fund portfolios. Banks sell derivatives that funds and portfolio companies use to hedge interest rate or foreign exchange risk. This, in turn, creates counterparty credit risk exposures for the banks. Some banks are entering the private credit space themselves, either by directly lending to private borrowers using their balance sheets, through their asset management arms, or by partnering with third-party asset managers. Supervisory concern – in more detail: The ECB found that banks often struggle to systematically identify overlapping exposures or co-lending arrangements and supervisors are concerned because bank exposures to private markets may imply risks to solvency and liquidity that risk management frameworks do not adequately capture. Enhancing risk data aggregation as a priority: Enhancing risk data aggregation and reporting (RDARR) is a supervisory priority and the ECB is stepping up pressure on banks that fail to address deficiencies in this area. The ECB review found that many banks face challenges when aggregating exposures across business lines or counterparty types. Two main reasons for poor risk management: (i) insufficiently developed risk management systems within banks, (ii) insufficient information on private markets activities. Reporting: Addressing the limited ability of banks to understand their exposures will require more consistent and transparent reporting by providers of private credit and private equity. Existing regulatory framework: The EU framework includes some disclosure requirements from private market funds and it is beginning to adapt I.e. recent revisions to the Alternative Investment Fund Managers Directive (AIFMD) introduce stricter requirements for loan-originating funds. Looking ahead: An exploratory scenario analysis on counterparty credit risk (CCR) is currently underway, focusing on vulnerabilities linked to NBFI exposures; aggregate results will be published alongside the 2025 EU-wide stress test report. Supervisory expectations on banks: The ECB states that banks need to build more robust, integrated risk management frameworks to keep pace with the growing complexity of their exposures to private markets. This includes better data aggregation across business lines, routine stress testing that reflects the potential for correlation and contagion, and clear governance around exposure limits to individual sponsors or fund groups. Regulatory co-ordination: The ECB states that a more coordinated approach is needed – within Europe and globally – to close data gaps, align regulatory treatment and ensure that risks accumulating outside the traditional banking perimeter do not go undetected or unmanaged. The European Commission's recent exploration of macroprudential policies for NBFIs provides an opportunity to introduce targeted tools to address leverage and liquidity mismatch, system-wide stress testing, better data access, and stronger coordination across authorities. Summary: Ultimately, the ECB's message is that traditional banking supervision must evolve to reflect the blurred boundaries between banks and NBFIs, and that better data, governance, and coordination are prerequisites for sound risk management. UK Government outlines proposals to boost pension investment in UK growth The UK government has published the final report of the Pension Investment Review, which sets out a series of reforms aimed at tackling fragmentation, increasing returns, and unlocking greater investment in UK productive assets such as infrastructure, high-growth companies, and private markets. In more detail: The review highlights the need for defined contribution (DC) schemes to deliver better outcomes for savers by improving investment performance and encouraging greater scale and diversification. This includes: Scale and consolidation: Reduce fragmentation in the DC market by consolidating into fewer, larger schemes capable of investing more effectively. AUM targets of £25 billion by 2030 are set for providers and master trusts. Disclosure regime: Introduce a mandatory Value for Money framework requiring schemes to report on net returns, costs, and service quality. This aims to support better decision-making and identify underperforming schemes for improvement or consolidation. Asset allocation: Explore setting baseline targets for allocations to private assets and improve transparency on investment strategies, including UK vs. overseas splits. UK pipeline of investment opportunities: Strengthen the supply of investable projects through better data, greater investment readiness, and increased public-private coordination. Wider context: With over £2 trillion in assets under management, UK pensions represent a major source of long-term domestic capital. The reforms are part of broader efforts to boost economic growth, resilience, and retirement outcomes. Looking ahead: Legislation to implement the reforms will be introduced via the upcoming Pension Schemes Bill. Phase Two of the Review, focusing on the adequacy of retirement outcomes, will launch in the coming months. Dubai finalizes capital reforms for asset managers The Dubai Financial Services Authority (DFSA) has finalized its long-anticipated reforms to capital requirements for Category 3 firms (primarily asset managers, fund managers, and advisors) in the DIFC. Policy aims: The goal of the reforms are to enhance proportionality, reduce unnecessary burden, and align more closely with EU/UK standards (notably the IFD/IFR regime). In summary: This reform affects how firms calculate capital adequacy, manage liquidity, and engage with compliance operations — with implications for regulatory data, capital modelling, and client advisory tools. Implementation timeline: The new framework takes effect on 1 July 2025, with a transition period lasting until 1 July 2026. Further guidance will be provided on managing capital and liquidity buffers during the transition.
Zawya
25-06-2025
- Business
- Zawya
Nigeria: Gombe gov reiterates commitment to sustainable economic reforms
Gombe State Governor, Muhammadu Inuwa Yahaya, has reiterated the commitment of his administration to sustainable economic reforms and infrastructure development. The Governor made the assertion when the Presidential Enabling Business Environment Council (PEBEC) held a sub-national stakeholders' engagement session and a statewide Town Hall Meeting in Gombe State, aimed at assessing the state's performance on business-enabling reforms and strengthening alignment with national economic initiatives. The session, which brought together key stakeholders from the public and private sectors, was designed to deepen the implementation of the State Action on Business Enabling Reforms (SABER) and promote inclusive growth through improved regulatory environments at the state level. Inuwa Yahaya, represented by the Commissioner for Finance, Muhammad Gambo Magaji, described the engagement as both timely and strategic. He emphasized that the recognition of Gombe as the top-ranking state in Nigeria for Ease of Doing Business is the result of intentional policies, strong political will, and robust administrative reforms. According to him, 'Our administration has streamlined business registration processes, reduced bureaucratic bottlenecks, digitized land administration systems, and introduced investor-friendly tax policies.' The Governor added that, 'We have also maintained a stable macroeconomic environment with consistent policies that inspire investor confidence, reinforced by the rule of law, low crime rates, and a pro-business regulatory framework.' Inuwa Yahaya further highlighted key infrastructure projects including the Special Agro-Processing and Export Free Zone, the Muhammadu Buhari Industrial Park, and the ultra-modern livestock development zone, as milestones of his administration's drive to create an enabling environment for investment and economic diversification. Delivering her remarks, the Director General of PEBEC, Princess Zahra Mustapha Audu, commended Gombe State for its outstanding performance in business reforms. 'Gombe has consistently set the pace as a shining example of sub-national reform success,' she noted. According to her, 'Being ranked number one in PEBEC's Ease of Doing Business survey for two consecutive years underscores the state's commitment to reform-driven governance.' In his welcome address, the State Commissioner for Trade, Investment and Tourism, Nasiru Mohammed Aliyu, praised PEBEC for its efforts in strengthening Nigeria's economic competitiveness, especially at the sub-national level. He reaffirmed the state's alignment with the national agenda for a business-friendly environment that promotes innovation, productivity, and inclusive growth. Gombe State Government, under the leadership of Governor Inuwa Yahaya, believes it has done more than enough to earn the position of best state in Ease of Doing Business again. And the numbers tell a convincing story. Internally Generated Revenue (IGR) has jumped from below N1 billion in 2019 to over N28 billion today. The state attracts more than $100 million in foreign direct investment annually. More than 1.5 million residents are engaged in skilled and unskilled labour, thanks to a growing private sector. The National Bureau of Statistics (NBS) estimates the state's GDP at $55.5 billion, with investment returns of over 20 percent, particularly in agriculture, renewable energy, and light industry. Much of this progress, state officials say, is the result of deliberate reforms and focused leadership. Processes for registering businesses have been simplified. Land administration has been digitised. The state has also introduced tax policies that are friendly to investors, especially small and medium enterprises. The Gombe administration has also placed a premium on infrastructure development. The Muhammadu Buhari Industrial Park has become a magnet for investment. A seed company recently commissioned there by former President Olusegun Obasanjo stands as evidence that Gombe is now firmly on the map for serious business ventures. Other major projects such as the Special Agro-Processing and Export Free Zone and the International Grains Market have further boosted investor confidence. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
Zawya
23-05-2025
- Business
- Zawya
Nigeria: Gov Mbah inaugurates Enugu ease of doing business council
Governor of Enugu State, Dr. Peter Mbah, on Thursday, inaugurated the Enugu State Ease-of-Doing-Business Council, saying it was in tandem with his electoral promise to grow the state into a $30bn economy from $4.4bn by repositioning it as the premier destination for business, investment, tourism and living. Inaugurating the 25-man Council at the Government House, Enugu, Mbah, who is also the Chairman of the Council, stressed that investors were not Father Christmas and would naturally tilt to where there is a conducive environment and higher return on investment, RoI. 'Recall that one of the first activities that I performed after my swearing was to sign Executive Order 005, which speaks to Ease of Doing Business. It largely tells us that we cannot achieve the ambitious economic growth plan that we have given ourselves if we do not attract private investments. 'Therefore, for us as a state government, this Ease-of-Doing-Business Council is consistent with our objectives to ensure that we create an environment for businesses to thrive. 'If you look at all the key indicators of Ease of Doing Business, you would notice that we have aggressively intervened across those various indicators,' he stated. Among others, he listed ease of access to land through the establishment of the Enugu State Geographic Information Systems (ENGIS), and establishment of a one-stop shop for processing of permits, the investments in ultramodern security infrastructure, building of transport infrastructure, digital infrastructure, and skilled manpower as some of the strategic steps taken to ease up the business in Enugu State. 'So, as the chairman of the council, we will all work hard to ensure that we come close as a state to become a frontier of the Ease of Doing Business,' he concluded. Speaking to newsmen, the 2nd Deputy President of the Enugu Chamber of Commerce, Industry, Mines and Agriculture, Dr. Eric Chime, who represented the president and the body, described the council as another great leap for Enugu State under Governor Mbah's leadership. 'The Chairman, who is the Governor, has stated all he has done to make Enugu State attract investment. What we are going to do is to be the wagon that will carry this message and let investors come. Enugu is the safest place to invest. 'Any investor that you want to tell to come, they will ask you about security first. If you are talking about security, the governor has taken care of it. If you talk about technology, the governor has taken care of it; infrastructure, the governor has taken care of it. So, our job is to take the good message and attract investors to the state because Enugu is a safe haven,' he enthused. Also, fielding questions from Government House correspondents, the President of the Nsukka Chamber of Commerce, Industry, Mines and Agriculture, Barr. Sam Otobueze, commended Mbah for efforts to align Enugu State with global standards to attract businesses. 'This is a very wonderful initiative. The world economy is changing, and the best way to get into it and be recognised is what we are doing because the more we attract businesses and investments into the state, the better for us. The more we get to the world map as one of those states, you can go and invest in business, the better for us,' he stated. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
