Central Bank updates AIFMD Q&A
On 15 July 2015, the Central Bank published updated Q&A. Two new questions regarding: (1) Stock Connect (ID 1094); and (2) investment in unregulated funds (ID 1095), are included in the Q&A.
The Q&A states that if an Irish authorised AIF proposes to acquire Chinese shares through Stock Connect, in order to meet the legal obligations of a depository, the depositary of the investment fund, or an entity within its custodial network (i.e. a sub-custodian), must ensure that it retains control over the shares at all times. The depository would need to satisfy itself that the manner in which the shares were to be held allowed it to meet its legal obligation under the AIFM Regulations, the AIFMD Level 2 Regulation and any conditions imposed by the Central Bank.
Investment in unregulated funds
A QIAIF investing more than 50% of its net assets in an unregulated investment fund must comply with the requirement to attach the periodic reports of the underlying investment fund to its own periodic reports.
ESMA updates AIFMD Q&A
Guidelines on reporting to national competent authorities
ESMA provided the following additional guidance on the reports required to be filed with national competent authorities (such as the Central Bank):
- When a non-EU AIFM reports information to the national competent authorities of a Member State, only the AIFs marketed in that Member State have to be taken into account for the purpose of the reporting.
- AIFMs should report information on non-EU master AIFs not marketed in the EU that have either EU feeder AIFs or non-EU feeder AIFs marketed in the Union.
- AIFMs should report the NAV of each AIF in the AIF’s base currency and in Euro.
- AIFMs should also report the value of the exchange rate used for the conversion.
- The procedure for first reporting of AIFs should be the same procedure as for first reporting of AIFMs as laid down in ESMA’s guidelines on reporting obligations.
- AIFMs should not report any information on AIFs for the reporting period during which the AIFs were created.
- AIFMs should include AIFs created during the reporting period in the total value of assets under management of the AIFM for that reporting period.
Calculation of the total value of assets under management
ESMA has also clarified that AIFMs should include short non-derivative positions for the calculation of the total value of assets under management.