On 29 March 2018 the Central Bank of Ireland (the "Central Bank") published a Consultation Paper ("CP119")1 proposing to consolidate and amend the Central Bank UCITS Regulations2, which form the basis for the Irish regulatory framework for UCITS.

The Central Bank UCITS Regulations came into effect on 1 November 2015 and replaced the long established UCITS Notices. They supplement the 2011 UCITS Regulations3 (the main Irish regulations that implement the UCITS Directive) and have been amended subsequently by the First Amending Central Bank UCITS Regulations4 and Second Amending Central Bank UCITS Regulations5. These regulations are supplemented by regulatory guidance and Central Bank Q&As on specific UCITS issues to make up the complete UCITS regulatory framework.

Proposed Changes

Some of the key amendments proposed are as follows:

  • Share class hedging - amendments to reflect the provisions of ESMA's Opinion on UCITS Share Class Hedging6(Regulation 27 and Schedules 7 and 8).
  • Performance fees - new obligations relating to UCITS which charge performance fees - previously contained in guidance, with the exception of a restriction on paying a performance fee more frequently than annually. Existing UCITS that pay performance fees more frequently than annually will have a (as yet unspecified) transition period to adjust their model (Regulation 41 and 75)
  • MMFR - amendments to reflect the provisions of the Money Market Fund Regulation.7
  • CP86 - codifying the CP86 requirements to establish and monitor daily an email address for regulatory correspondence (Regulation 48) and to keep records that are immediately retrievable in or from Ireland (Regulation 129).
  • Management company/depositary second set of semi-annual accounts - requiring a full 12 month set of unaudited financials for management companies and depositaries, instead of a second set of half-yearly accounts and requiring that these full year unaudited financials are submitted within one month of the relevant period (previously two months) (Regulation 99 and 118).
  • UCITS V depositary requirements - adjustments to depositary obligations and depositary agreement requirements in light of UCITS V, including removal of the obligation to review each UCITS' valuation methodologies (Part 12).
  • Temporary suspension notifications - new requirements to (i) update the Central Bank within 21 working days of applying a temporary suspension; and (ii) notify the Central Bank immediately when any temporary suspension is lifted (Regulation 34).
  • Consolidation - of the First Amending Central Bank UCITS Regulations and Second Amending Central Bank UCITS Regulations.

Changes are reflected in the draft revised Central Bank UCITS Regulations, appended to CP119. The paper also summarises the key amendments and asks respondents for feedback. The closing date for responses is 29 June 2018.