The Central Bank consultation on how the UCITS IV regulatory framework will be implemented in Ireland is expected to issue soon. The compliance implications for individual UCITS funds and for UCITS managers will only become clear when the Central Bank consultation has closed and final UCITS notices and guidance notes issue. In the meantime, a significant level of clarity has been achieved by the level 2 and level 3 measures which have issued to date. These are detailed below for ease of reference.

The final version of the UCITS IV Directive (2009/65/EC) was published on 17 November 2009. The UCITS IV Directive seeks to consolidate and modernise the regulatory framework applicable to UCITS and to make UCITS more market efficient. The Directive will be implemented in Ireland by 1 July 2011.

As the UCITS IV Directive is a framework Directive, its general provisions are expanded by implementing measures. UCITS IV involves four implementing measures known as the "level 2 measures", i.e. two regulations and two directives, which were all adopted on 1 July 2010 and published on 10 July 2010:

Both Regulations will be automatically applicable in Ireland as of 1 July 2011 without the need for Irish implementing legislation, unlike the Directives which must first be integrated into national law (by way of Irish regulations) by 1 July 2011.

In addition, implementation of UCITS IV involves a variety of " level 3 measures" which currently comprise the following guides and guidelines issued by CESR (which has now evolved into ESMA);

As detailed under EU and International Developments, CESR consulted on guidelines for risk measurement and global exposure measurement for certain types of structured UCITS. When guidelines covering this are adopted, they will be incorporated into the July 2010 guidelines listed above on UCITS risk management and calculation of global exposure and counterparty risk for UCITS.

Also of relevance to the new regulatory framework (although not specifically to UCITS IV implementation) are CESR's Guidelines on a common definition of European money market funds which issued in May 2010.

For further information about UCITS IV please click on either of the below links.