Consultations of interest

  • CP86: Fund Management Company Effectiveness – View our detailed article here
  • CP105: Consultation on a second set of amendments to the Central Bank UCITS Regulations

The Central Bank UCITS Regulations 2015 require amendment as a result of the implementation of UCITS V, and some technical amendments have also been proposed to correct typographical errors and inconsistencies. The Central Bank is seeking feedback on the proposals by 25 August 2016.

The Central Bank also published a feedback statement to CP99: Consultation on Amendments to the AIF Rulebook. This summarises the responses received together with the Central Bank’s comments and decisions.

UCITS Q&A

On the 2 June 2016, the Central Bank published a thirteenth edition of its UCITS Q&A. The new questions added are:

  • ID 1063 UCITS Management Company – Organisational Effectiveness: clarifying that except in rare cases where unique and unusual circumstances apply, an organisational effectiveness review should, at a minimum, be conducted on an annual basis.
  • ID 1064 Share Class Hedging: clarifying that over-hedged positions should be included in calculations when leverage is calculated as the sum of the notionals (where a UCITS uses a VaR approach to calculate global exposure); in calculations of counterparty risk; and, in calculations of concentration exposures.
  • ID 1065 Companies Act 2014: restating that the CBI does not require UCITS management companies, alternative investment fund managers, AIF management companies, fund administrators, depositaries and investment firms to convert to Designated Activity Companies (DACS) under the Companies Act 2014.
  • ID 1066 Companies Act 2014: confirming that the Central Bank does not require UCITS management companies, alternative investment fund managers, AIF management companies, fund administrators, depositaries and investment firms which are taking action to re-register as a company type recognised under the Companies Act 2014 to submit amendments to their constitution. However, where companies re-register as DACs a copy of the new certificate of incorporation should be submitted.

An existing question – ID 1013 – has been amended.

AIFMD Q&A

On 2 June 2016, the Central Bank published its nineteenth edition of the AIFMD Q&A. The new questions added are:

  • ID 1104 Fund Management Company – Organisational Effectiveness: clarifying that except in rare cases where unique and unusual circumstances apply, an organisational effectiveness review should, at a minimum, be conducted on an annual basis.
  • ID 1105 Rules – Significant Influence in the Context of Certain Types of AIFs: clarifying that if a RIAIF or QIAIF invests a portion of its assets in a venture capital, development capital or private equity strategy, the significant influence rule does not apply to that proportion of assets which is invested in venture capital, development capital or private equity.
  • ID 1106-ID 1107 Companies Act 2014:
    • ID1106: restating that the CBI does not require UCITS management companies, alternative investment fund managers, AIF management companies, fund administrators, depositaries and investment firms to convert to Designated Activity Companies (‘DACS’) under the Companies Act 2014.
    • ID1107: confirming that the Central Bank does not require UCITS management companies, alternative investment fund managers, AIF management companies, fund administrators, depositaries and investment firms which are taking action to re-register as a company type recognised under the Companies Act 2014 to submit amendments to their constitution. However, where companies re-register as DACs a copy of the new certificate of incorporation should be submitted.

Investment Funds Q1 2016 statistical release

On 2 June 2016, the Central Bank published its Investment Funds Q1 2016 statistical release. It reported that the net asset value of investment funds resident in Ireland (IFs) decreased by 2.5 percent (€35 billion) over the first quarter of 2016, to €1,397 billion from €1,432 billion in Q4 2015. The Central Bank further reported that equity funds experienced outflows for the first time since Q2 2013, with €1.5 billion net redemptions. The total assets held by IFs decreased in value by €29 billion.

Money Market Funds Q1 2016 statistical release

On 2 June 2016, the Central Bank published its Money Market Funds, 2016 Q1 statistical release. It reported that the net asset value of money market funds (MMFs) resident in Ireland at end-December 2015 was €434 billion, a decrease of 7 per cent since September 2015, and that this decrease was largely attributable to the impact of euro appreciation on US dollar and sterling denominated funds.