The Central Bank has held its consultation, CP 50 which dealt, among other things, with the proposed implementation of UCITS IV in Ireland. The revised UCITS Directive must be implemented in Ireland by 1 July 2011. At a practical level, and assuming that the consultation timelines do not change, we anticipate that
- Existing UCITS management companies must submit revised business plans for review by Friday 29 April 2011.
- Self Managed Investment Companies (SMICs) and UCITS management companies authorised from 1 July 2011 will be required to comply with all relevant requirements from their date of authorisation.
- SMICs authorised before 1 July 2011 will be required to comply with requirements on rules of conduct and risk measurement from 1 July 2011 and will be required to confirm that their business plans have been amended accordingly by 1 July 2011. These SMICs will be required to comply with all applicable UCITS IV requirements by 1 July 2013.
- UCITS which use financial derivative instruments and operate a risk management process (RMP) will need to review the revised requirements to decide whether changes may be required to the RMP. Any necessary changes are required to be made to the RMP by 1 July, 2011, but it should not be necessary to file the revised RMP with the Central Bank in advance of this date. Instead, each such UCITS will be required to confirm to the Central Bank by 1 July, 2011 that its RMP complies with the requirements.
- UCITS which are making substantial changes to their RMP, or are making the changes in conjunction with changes to the investment policies of the UCITS, should consult their usual contact at A&L Goodbody as to whether the revised RMP will need to be reviewed by the Central Bank in advance of the 1 July date.
- UCITS umbrella vehicles and UCITS stand alone vehicles which are authorised from 1 July 2011 must use the key investor information document (KIID).
- UCITS umbrella vehicles and UCITS stand alone vehicles which are authorised up to 1 July 2011 may use the simplified prospectus (SP) until 30 June 2012 and must thereafter use the KIID. An existing UCITS umbrella vehicle which launches a new sub-fund after 30 June 2011 may elect to publish an SP or a KIID for the new sub-fund.
- Existing UCITS will not, in general, need to amend their prospectus in advance of 1 July 2011. Money Market Funds may need to amend their prospectus as detailed below. A UCITS may wish to amend its prospectus and constitutional document to avail of certain provisions of the new framework (such as providing its prospectus on a website rather than paper or operating as a feeder fund). New UCITS or UCITS updating their prospectus will need to consider text dealing with profile of a typical investor and, where appropriate, the method of calculating global exposure, collateral requirements, investment restrictions and such like.