The Central Bank also published Issue 8 of 2015 of its Markets Update. This covers:
Central Bank of Ireland
- Updated Transparency Rules November 2015;
- CP99: Consultation on Amendments to the AIF Rulebook (discussed above); and
- UCITS Q&A 10th Edition - A new Q&A ID 1058 has been added on the publication and submission to the Central Bank by a UCITS of its first annual/half-yearly reports.
Central Bank UCITS Q&A has been updated as follows:
Q. Regulation 9(4) of the Central Bank UCITS Regulations provides that a ‘responsible person shall not invest assets of the UCITS in a financial index where a single component’s impact on the overall return of that index exceeds the diversification requirements set out in Regulation 71 of the UCITS Regulations’. The Central Bank had, in Guidance Note 2/07, stated that a UCITS proposing to use a financial index comprised of eligible assets with concentrated levels in excess of that permitted by the Regulations, may, applying a look through approach, consolidate the constituents of the index with the assets held directly by the UCITS to ensure it meets the risk-spreading requirements of the Regulations. Is the Central Bank continuing to adopt this position in light of Regulation 9(4)?
A. Regulation 9(4) follows the ESMA guidelines on ETF and other UCITS issues where each financial index must meet the relevant criteria and no look through can be applied. Accordingly, it is not possible to treat such investments as a look through of a financial index. However, this is without prejudice to Article 9(2) of the Eligible Assets Directive (Commission Directive 2007/16/EC) which allows investments in financial derivatives whose underlyings are eligible assets with concentration levels in excess of that permitted by the UCITS Regulations to be regarded as financial derivatives on a combination of assets.
- Reporting Guidance for Alternative Investment Fund Managers;
- Address by Gerry Cross, Director, Policy and Risk, Central Bank of Ireland to the ACOI Annual Conference.
European Securities and Markets Authority (ESMA)
- ESMA has published its Final Report on Guidelines on complex debt instruments and structured deposits in MiFID II;
- ESMA will not exempt the collateralisation of bank guarantees for energy derivatives under EMIR;
- MiFID: ESMA has made available pan-EU data on suspensions and removals from trading;
- ESMA has published a discussion paper to consult on the validation and review of Credit Rating Agencies' methodologies;
- ESMA has updated EMIR standards on data reporting;
- ESAs have defined risk weights for credit ratings in the EU;
- ESAs have published a consultation paper on PRIIPs Key Information Documents;
- ESMA Chair's statement to the ECON Committee Scrutiny Hearing on MiFID II;
- ESMA has approved Greek HCMC short selling ban on bank shares;
- ESMA has published MAD/MAR Q&A;
- ESMA is consulting on indirect clearing arrangements;
- ESMA has published responses to the Consultation on Draft implementing technical standards under MiFID II.
IOSCO (International Organization of Securities Commission)
- CPMI-IOSCO have published a consultative paper - Guidance on cyber resilience for financial market infrastructures;
- IOSCO has published its final report on Standards for the Custody of CIS Assets.
EBA (European Banking Authority)
- Joint Consultation Paper on PRIIPs key information for EU retail investors.
- Prospectus Rules Overhaul.