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Domestic
Related areas
Key dates
Updated Central Bank UCITS regulations and performance fee guidance
The CBI published its final package of updates to the Irish UCITS domestic framework following Consultation Paper 161 (CP161), including:
The Central Bank UCITS Regulations repeal and replace the 2019 Central Bank UCITS Regulations, align the domestic framework with amendments introduced by Directive 2024/927 commonly referred to as AIFMD II, as transposed into Irish law by the European Union (Undertakings for Collective Investment in Transferable Securities) (Amendment) Regulations 2026 and also makes a number of targeted Irish policy updates.
Key takeaways:
Performance fees: the revised rules permit a broader range of methodologies, including hurdle rates, fulcrum fees and other symmetrical fee models in line with the ESMA Guidelines on Performance Fees. Performance reference periods may be shorter than the life of the fund, subject to a rolling five–year minimum, and crystallisation rules have been recalibrated for certain models. Depositary verification is also reframed, with the management company responsible for ensuring appropriate procedures have been effectively implemented.
Prospectus and fee disclosures: prospectuses must disclose the maximum amount of any recurring NAV–based fees deducted from fund assets.
Liquidity management tools: the revised rules sit within the EU LMT regime introduced under AIFMD II. UCITS must disclose selected LMTs and activation/deactivation conditions and management companies should consider selecting at least one quantitative tool and one anti–dilution tool.
ETFs, dealing and redemption mechanics: UCITS ETFs may now automatically use different cut–off times for cash and in–kind dealings and different cut–off times where hedged and unhedged share classes implement currency hedging at share class level, without applying to the CBI for a specific derogation. UCITS Q&A ID 1030 will be deleted.
Other updates: the CBI retained flexibility on amortised cost valuation for non–MMF UCITS investing in money–market instruments, clarified connected–party transaction rules, streamlined reporting provisions and retained minimum residency requirements for directors and designated persons and its discretion to impose additional requirements at authorisation.
Read our insight here.
CBI review of delegation in the Irish funds sector
The CBI has published its feedback report on a thematic review of delegation practices in the Irish funds sector. It assessed how Irish authorised fund management companies (FMCs) manage delegation, focusing on governance, oversight, and the effectiveness of control frameworks. The review included quantitative data requests, qualitative surveys, desk–based reviews and on–site inspections.
Overall, the CBI found that FMCs have good governance frameworks, controls, oversight processes and data capabilities. However, the CBI identified areas where some FMCs require enhancements to their governance arrangements and operating models. A small number fell materially short of supervisory expectations and are subject to time–bound risk mitigation programs.
Key findings:
Governance: most FMCs have established governance frameworks with diverse, experienced boards. Enhancements are needed in board independence, adequacy of designated person resources, over–reliance on group–level committees that may limit local decision–making and challenge and informal governance arrangements lacking documented policies.
Portfolio management: robust oversight practices were noted with regular delegate engagement and clear escalation pathways. Concerns include insufficient autonomy in oversight, lack of documented procedures, and inadequate wind–down or transition planning.
Risk management: this is well established as a core retained function. Some FMCs need to strengthen resourcing, independent challenge capabilities and real–time data access where delegates support core risk activities, rather than relying on delegate reporting.
Delegate oversight: frameworks are generally supported by robust practices including risk based due diligence questionnaires but a reliance on group processes for delegate due diligence rather than direct FMC assessment and insufficient local representation at group–level oversight committees require attention.
Data capabilities: increasing use of data as a strategic asset was welcomed but concerns included fragmented data integration, lack of contingency arrangements and delegates handling pre and post trade controls including overriding internal risk limits. Other FMCs had not established processes and contingency arrangements to manage potential data loss or interruption.
Next steps:
The CBI will undertake a broader review of FMC governance this year including simplifying the CBI’s FMC guidance and the PCF framework, enhancing governance requirements and consideration of how the IAF/SEAR framework might be proportionately applied to the funds sector.
The CBI expects all FMCs to consider the report with input from their boards, conduct an analysis of the supervisory expectations and put in place a time–bound plan by year–end 2026 to address any gaps in operational, resourcing, and governance arrangements relating to delegation. Firms that fell materially short of expectations are subject to dedicated risk mitigation programmes.
Read more here.
CBI compliance and internal audit CSA
The CBI published its feedback report on the Common Supervisory Action (CSA) on compliance and internal audit functions in the investment funds sector. The CBI’s review formed part of the European and Securities Markets Authority (ESMA) CSA on the effectiveness of compliance and internal audit functions of fund managers.
Overall, CSA findings indicate that firms’ compliance and internal audit governance structures and operations are broadly in line with regulatory expectations. The CBI also noted that many firms have established mature compliance and internal audit functions, while identifying several areas requiring further review and consideration. These areas include:
The CBI expects well established compliance functions, underpinned by sound governance arrangements, clearly defined policies and procedures, risk–based planning, rigorous testing protocols and comprehensive oversight mechanisms to ensure ongoing adherence to regulatory requirements. The CBI similarly expects internal audit functions to demonstrate clear governance and independence, documented audit policies and procedures, risk–based planning, rigorous audit testing and robust oversight of audit findings and remediation.
The CBI emphasised the board’s central role in ensuring these expectations are met. In particular, boards are expected to exercise active oversight, challenge and accountability and to maintain appropriate engagement with both the compliance and internal audit functions so that key control frameworks remain effective in identifying and remediating risks in a timely manner.
Fund managers should review and consider the contents of the report together with ESMA’s final report on compliance and internal audit functions and may also wish to read our earlier ESMA CSA insight here. The CBI expects the report to be discussed by the board and relevant personnel, with due consideration given to the observations and expectations set out in both the CBI and ESMA reports. Where deficiencies are identified, firms should develop time–bound remediation plans to ensure that appropriate measures and controls are in place.
Public consultation on reform of limited partnership framework
The Department of Enterprise, Tourism and Employment has launched a consultation on targeted reforms to Ireland’s limited partnership regime as part of the proposed Miscellaneous Provisions (Registration of Limited Partnerships and Business Names) Bill 2024. The proposals include increasing the maximum number of partners from 20 to 149, introducing a statutory “whitelist” of activities that limited partners may undertake without jeopardising limited liability, and allowing greater flexibility in relation to capital contributions, subject to appropriate safeguards. The reforms are intended to enhance Ireland’s competitiveness as an investment domicile while maintaining transparency and regulatory oversight.
While the consultation is not limited to investment funds, it will be of particular interest to fund sponsors and managers using Irish partnership structures, including in private markets, venture capital and real assets strategies. The proposed changes are aimed at making the limited partnership framework more usable and commercially certain, while forming part of a wider package of registration, transparency and Irish nexus reforms under the Bill.
Submissions are invited until 14 August 2026.
CBI supplemental guidance on prohibition notices under the fitness and probity regime
The CBI published supplemental guidance on prohibition notices under the fitness and probity regime and a related feedback statement on consultation paper 166 (CP166).
The supplemental guidance sets out the circumstances that a decision maker will consider when determining the nature, scope and duration of a prohibition, a measure that forbids a person from performing a controlled function in a regulated financial firm in order to protect users of financial services and the financial system.
The CBI has made targeted amendments to the supplemental guidance. These changes address some of the topics raised in feedback, including the circumstances relevant to prohibition and the publication of prohibition notices.
The supplemental guidance supplements the CBI’s main guidance on fitness and probity investigations, suspensions and prohibitions. The main guidance is currently under review, and in due course, the CBI has indicated that the documents will be integrated. This is being done together with the CBI’s wider implementation of the findings of a recent High Court judgment that relates to its fitness and probity enforcement procedures more generally.
CBI speeches
July speeches by the CBI include:
CBI markets update
The CBI published Issues 11 to 15 of its markets update, covering:
For more information on these topics please contact any member of A&L Goodbody's Asset Management & Investment Funds team.
Date published: 12 August 2026