Asset Management & Investment Funds: Irish Practice Developments - June 2018
Some approaching compliance deadlines
- 29 June 2019. CP119 - Deadline for responses to Central Bank Consultation CP119 on amendments to (and consolidation of) the Central Bank UCITS Regulations.
- 1 July 2018. CP86 - Existing Fund Management Companies (UCITS ManCos, AIFMs, self-managed UCITS and internally managed AIFs) must comply with the new rules which derive from CP86 by 1 July 2018.
- 21 July 2018. MMF Regulation - The MMF Regulation must be implemented by EU Member States by 21 July 2018. The MMF Regulation introduces new requirements for MMFs in particular, portfolio composition, valuation of assets, diversification, liquidity management and credit quality of investment instruments. Existing UCITS and AIF MMFs must comply with the new rules by 21 January 2019.
- 31 August 2018. Fund Profile return - The first Central Bank Fund Profile return is to be prepared for the period up to 30 June 2018, with a submission deadline (via ONR) of 31 August 2018. This 30 June 2018 return applies to all sub-funds authorised by the Central Bank at 30 June 2018 whether they are dormant, have assets or have not launched. The Fund Profile return replaces the IF Annual Sub-Fund Profile return.
- All sub-funds, regardless of whether the IF Annual Sub-Fund Profile return to 31 December 2017 has already been submitted to the ONR, will be required to submit the new updated return for the period up to 30 June 2018. Subsequent Fund Profile returns are to be prepared for the period to 31 December. These Fund Profile returns will also carry a submission deadline of 28 February. In 2018 alone, in addition to the 30 June 2018 return, a Fund Profile return will be required, made up to 31 December 2018. This additional return will have a submission deadline of 28 February 2019.
- The Central Bank does not anticipate that the Fund Profile will change from year to year, as changes would most probably reflect changes within the Fund's offering documents. Therefore, year-to-year updates to the Fund Profile are expected to be minimal and reflect significant changes to a Fund's profile. The Central Bank has issued guidance and a template here.
- 1 September 2018. Money Market Funds - Money Market Funds which are availing of a transitional period must submit all documents requiring review to the Central Bank no later than 1 September 2018.
- 30 November 2018. Filing Annual accounts of Variable Capital Companies in CRO - The Companies (Accounting) Act 2017 obliges UCITS investment companies and AIF investment companies to file annual accounts for financial years commencing on or after 1 January 2017 with the CRO within eleven months of the relevant financial year end. By 30 November 2018 we will see the first such accounts being filed.
- 1 January 2019. Benchmarks Regulation - Prospectuses of UCITS and of funds which are subject to the Prospectus Directive, which reference a benchmark and which have been approved prior to 1 January 2018, will need to be updated at the next update and in any event by no later than 1 January 2019 to include information on the benchmark.
Central Bank Markets Updates
The Central Bank of Ireland (Central Bank) published issue 8 of its Markets Update on 15 June 2018. The key development was a Central Bank notice regarding Fund Management Company Directors who act as a Designated Person in the context of the Central Bank's Fitness & Probity Regime. Please speak with your usual contact on the Asset Management & Investment Funds team if you would like more information on this topic.
The Central Bank published issue 9 of 2018 of its Markets Update on 22 June 2018. The key development was the publication of Central Bank Consultation Paper (CP121) on amendments to Central Bank Market Abuse and Transparency Rules and consolidation into Central Bank (Investment Market Conduct) Rules.
Irish Funds MiFID II Q&A
Irish Funds published the Second Edition of the Irish Funds MiFID II Q&A with new Q&As in relation to:
- operational considerations for setting up Research Payment Accounts
- delegation of portfolio management activities to a third country investment manager
- client reporting for investment funds in the event of a 10% depreciation in the overall value of the portfolio
Please speak with your usual contact on the Asset Management & Investment Funds team if you would like more information on this topic.
2018 Annual FATCA and DAC2-CRS Reporting
Irish Revenue released updates for 2018 AEOI (FATCA and DAC2-CRS) annual reporting. These include:
- a reminder to Irish Financial Institutions of their obligation to file both FATCA and CRS returns by the 30 June deadline
- an update relating to amended schema and validation requirements, for both FATCA and CRS reporting
- confirmation of the details of the CRS supplementary return schema for reporting of pre-existing CRS accounts closed during 2016
- additional information explaining how Irish Financial Institutions should report US account holders for which they do not have a US TIN
For entities with AEOI filing obligations in the Cayman Islands, the Cayman Islands Tax Information Authority issued an Industry Advisory dealing with 2018 AEOI (FATCA and CRS) annual reporting.
For more information please contact a member of the Asset Management & Investment Funds Team.
Date publised: 29 June 2018