The Central Bank of Ireland (the “Central Bank”) revised the UCITS and Non-UCITS Notices, respectively to provide for a new outsourcing regime in July 2011 and to remove the previously existing rules relating to “minimum activities”).

This was issued further to a submission made to the Central Bank by the Irish Funds Industry Association with respect to the outsourcing of administration activities and the responses received from administration firms to the Central Bank following a survey.

The Central Bank confirmed that in addition to the continuous and robust oversight of those procedures carried out by the outsourcing service providers, the final check and release of the Net Asset Value (the “NAV”) is a core administration activity which must be performed by the administrator. The Central Bank has also confirmed that it is not intended that the outsourcing requirements will be relaxed in respect of intra-group outsourcing that may occur.

In the past, the Central Bank has approved a limited number of outsourcing arrangements to allow the outsourcing service provider to release the NAV prior to its review by the Irish administrator the following day.

The Central Bank has stressed that these “exceptional circumstances” will be assessed on a case-by-case basis. The Central Bank has stated that all administration firms are required to submit a letter, duly signed by management, confirming that they are in compliance with the outsourcing requirements, on or before 29 June 2012.