On 17 May 2013, the Irish Funds Industry Association issued a paper (the “Paper”) to provide guidance on the application of the Central Bank of Ireland’s revised UCITS Notices (the “Notices”). The Notices were revised in February 2013 to reflect the European Securities and Markets Authority’s guidelines on exchange traded funds and other UCITS issues (the “Guidelines”) (effective from 18 February 2013).
The Paper’s guidance focuses on the additional disclosures now required to be made in the annual and half-yearly reports prepared by Irish authorised UCITS following the amendment of the Notices. Given the application of the Guidelines on 18 February 2013, the new disclosure requirements will apply to the annual and half-yearly reports ending on or after 18 February 2013.
The Paper highlights that in determining how the disclosures will be made in the first year of application, the auditors and manager/board of directors of the UCITS will need to determine the preferred approach. A UCITS will have two options open to it:
- Prepare a separate note to the financial statements highlighting where the additional disclosures required under the Notices are located within the main body of the financial statements; or
- Remain silent on the fact that additional disclosures are now required under the Notices while ensuring that the necessary disclosures are in fact incorporated to ensure compliance.
The Paper provides some detailed recommendations on each of the new disclosures required which may assist a UCITS in determining the best course of action when preparing its financial statements.