The Central Bank has written to industry in relation to the ESMA opinion regarding the UCITS “trash bucket". ESMA is of the opinion that UCITS may only invest in units or shares of collective investment undertakings as defined in Article 50(1)(e) of the UCITS Directive (ie the requirements for investment in CIS). Accordingly UCITS may not use this 10% “trash bucket” to invest in unregulated hedge funds. The Central Bank requires Irish UCITS to comply with the interpretation of Article 50 (2) (a) as set out in the ESMA opinion. UCITS which currently have holdings of units or shares in open-ended collective investment undertakings which do not meet the criteria set out in Regulation 68 (e) of the European Communities (Undertakings in Transferable Securities) Regulations 2011 (SI 352 of 2011), as amended, must dispose of such holdings by 31 December 2013. New investments in open-ended collective investment undertakings must meet the criteria set out in Regulation 68 (e).