The Financial Regulator will permit all Irish authorised investment funds to charge fees and expenses to capital with effect from 1 September 2010, where this is provided for in the constitutional document and where there is adequate disclosure and certain requirements are met.

This development is also most welcome and will give greater flexibility to open ended distributing fixed income funds which were not previously permitted to charge fees and expenses to capital. Such funds will now be in a position to structure their portfolios to ensure maximum benefit for investors.