As noted in our Front Page newsalert, the Central Bank of Ireland (Central Bank) published new Central Bank UCITS Regulations which will commence on 1 November 2015 (Central Bank UCITS Regulations). The Central Bank UCITS Regulations supplement existing legislative requirements, in particular the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011. For the most part, the rules in the Central Bank UCITS Regulations are the same as the conditions set out in the Central Bank’s UCITS Notices but a small number of policy changes are included. The Central Bank has also restructured its UCITS guidance to reflect the publication of the Central Bank UCITS Regulations, as detailed below.

The Central Bank issued a markets update on 5 October 2015 which includes:

  • The Central Bank UCITS Regulations.
  • The restructured UCITS guidance which reflects the publication of the CB UCITS Regulations and will also come into effect on 1 November 2015.  The current UCITS guidance in the form of Guidance Notes) will remain on the Central Bank website until that date and will be removed thereafter.
  • UCITS Q&A Seventh Edition. The Q&A contains new questions ID 1018 to 1046 reflect the introduction of the CB UCITS Regulations 2015, questions ID 1007 and ID1009 are no longer relevant and have been deleted and question ID 1008 has been re-written to reference the CB UCITS Regulations 2015.
  • Feedback statement on CP77 (Consultation on publication of UCITS Rulebook).
  • Feedback statement on CP84 (Consultation on the adoption of ESMA’s revised guidelines on ETFs and other UCITS issues).
  • AIFMD Q&A Sixteenth Edition. New questions ID 1097 (Directed Brokerage), ID1098 (Board Composition) and ID1099 (Non- material change) are included.
  • First edition of the Investor Money Regulations Q&A. The Investor Money Regulations Q&A sets out answers to queries likely to arise in relation to the implementation of the Investor Money Regulations.

A detailed analysis of the Central Bank UCITS Regulations is available here.

The Central Bank subsequently published an updated UCITS Q&A Eighth Edition which provides additional guidance with respect to the transitional provisions for the Central Bank UCITS Regulations.

  • Q&A 1047 concerns existing derogations or waivers from the UCITS Notices These fall away from 1 November 2015 and applications to receive a similar waiver should be received by the Central Bank before 1 November 2015.
  • Q&A 1048 concerns the timing of revisions to a UCITS prospectus. Technical amendments, for example to replace references to the UCITS Notices with references to the Central Bank UCITS Regulations, should take place when the prospectus is next updated.  Where text needs to be updated to reflect the text of the Central Bank UCITS Regulations or where the Central Bank UCITS Regulations  have refined rules contained in the UCITS Notices (e.g. connected party transactions), that can be treated as a technical update which can be incorporated when the prospectus is next updated. Regulation 124(1) of the Central Bank UCITS Regulations grants a transitional period for prospectus amendments to include disclosures where a responsible person proposes, on behalf of a UCITS, to take short positions.  These amendments must be made when the prospectus is next updated. Where a UCITS is planning to take advantage of a new flexibility introduced by the Central Bank UCITS Regulations and where the previous position is set out in the UCITS prospectus (e.g. collateral diversification), the prospectus must be updated before the responsible person, on behalf of a UCITS, starts to take advantage of the new flexibility.
  • The Central Bank have also received a number of other queries on the Central Bank UCITS Regulations, mostly relating to interpretation. It is expected that these will be addressed separately in a further UCITS Q&A update in early November.