Asset Management & Investment Funds: Irish Practice Developments – April 2022
3 June 2022 filing deadline for impacted in-situ PCF roles under the CBI's Fitness & Probity Regime
The Central Bank of Ireland (CBI) updated the list of pre-approval controlled functions (PCFs) under the Fitness & Probity Regime. Regulated financial service providers (RFSPs), which include regulated funds, will need to assess the changes and meet the deadline for impacted in–situ roles by 3 June 2022.
For more information, read here
CBI's Beneficial Ownership Register for Certain Financial Vehicles – information update
The CBI issued an update on the collection of beneficial owner PPS numbers (referenced in our November 2021 AMIF bulletin). No further action is required by CFV in respect of this update at this time.
The further resubmission of filings to the CBI's Beneficial Ownership Register of CFV to include PPSNs will now take place in Q3 2022.
The purpose of the collection of beneficial owner PPS numbers will be to verify the information submitted to the register.
Where a beneficial owner has not been issued with a PPS number and has been approved by the CBI for a PCF role under the Fitness & Probity Regime, that person's unique CBI reference number may be entered on the register.
Where a beneficial owner has not been issued with a PPS number and has not been approved by the CBI for a PCF role under the Fitness & Probity Regime, they will need to furnish a declaration as to verification of identity. Where the declaration is made in Ireland, it can be witnessed by a notary public, peace commissioner, commissioner for oaths or a person authorised to take and receive statutory declarations (this would include a practising solicitor). Where the declaration is not made in Ireland, it must be witnessed by a notary public.
The CBI updated its Beneficial Ownership Register FAQ to clarify the position in respect of liquidations.
The CBI updated its dedicated webpage where supervised entities can access relevant information on changes to the Russia/Ukraine Regulations (last updated on 21 April 2022).
On 8 April 2022, the EU adopted a fifth package of sanctions which include:
- Amendments to existing sanctions regime – Russia (Sectoral Measures) Regime (Council Regulation 2022/576). This extends the prohibition on the sale of euro-denominated transferable securities to all official currencies of the Member States.
- Amendments to existing sanctions regime – Belarus (Sectoral Measures) Regime (Council Regulation 2022/577). This imposes, among other things, further restrictive measures prohibiting the sale to Belarus of transferable securities denominated in any official currency of a Member State.
- Amendments to existing sanctions regime – Ukraine (Territorial Integrity) Regime (Council Regulation 2022/580 and Council Implementing Regulation 2022/581).Council Regulation 2022/580 introduces further derogation options from the asset freeze and the prohibition to make funds and economic resources available to designated persons and entities. Council Implementing Regulation 2022/581 adds 216 individuals and 18 entities, including four Russian banks, to the list of persons, entities and bodies subject to restrictive measures.
The EU Commission updated its webpage, entitled Sanctions adopted following Russia’s military aggression against Ukraine, which contains information on the various sanctions adopted, including various Frequently Asked Questions. The page is regularly updated. Natural and legal persons are encouraged to regularly visit this page for the latest information, in particular before contacting the CBI with queries relating to sanctions adopted in this regard.
The EU Commission website has a suite of EU Commission FAQ with useful analysis on a variety of issues. Notably,
- FAQ 4 of FAQs on circumvention and due diligence concerning sanctions adopted following Russia’s military aggression against Ukraine and Belarus' involvement in it points out that It is for each operator to develop, implement, and routinely update an EU sanctions compliance programme that reflects their individual business models, geographic and sectoral areas of operations and related risk-assessment.
- FAQ 2 of FAQs on the sale of securities denominated in the currency of a Member State following sanctions adopted in view of Russia’s military aggression against Ukraine (Article 5(f), references "Article 12 of Council Regulation 833/2014 which prohibits to participate knowingly and intentionally in activities the object or effect of which is to circumvent prohibitions in the Regulation", in the context of the due diligence required to ensure compliance with sanctions obligations.
Please speak with your usual contact in the Asset Management & Investment Funds team if you would like more detail on this topic.
Date published: 29 April 2022