Asset Management & Investment Funds: Irish Practice Developments – September 2022

European Union (Undertakings for Collective Investment in Transferable Securities) (Amendment) (No.2) Regulations 2022

The European Union (Undertakings for Collective Investment in Transferable Securities) (Amendment) (No.2) Regulations 2022 (S.I. 442 of 2022) implement the UCITS delegated directive (EU) 2021/1270 on integrating sustainability risks & factors.

Following on from the implementation of the Sustainable Finance Disclosure Regulation (SFDR) and the Taxonomy Regulation, on 21 April 2021, the European Commission adopted a delegated UCITS directive and delegated Alternative Investment Fund Manager (AIFM) regulation on the sustainability risks and sustainability factors to be taken into account for UCITS management companies and AIFMs.

The delegated AIFM regulation has direct effect. The European Union (Undertakings for Collective Investment in Transferable Securities) (Amendment) (No.2) Regulations implement the UCITS delegated directive and came into effect on 12 September 2022. You can read our client publication here.

CBI financial stability note on climate risks in the financial system

The Central Bank of Ireland (CBI) published a Financial Stability Note, “Climate Risks in the Financial System: An Overview of Channels, Impact, and Heterogeneity”, authored by James Carroll. The Note looks at how physical and transition risks might translate to the real economy and impact households, businesses, and the financial sector.

CBI levies

The Central Bank Act 1942 (Section 32D) Regulations 2022 (S.I. No. 426 of 2022) set out CBI regulatory levies for 2022. We expect the CBI Funding Strategy and Guide to the 2022 Industry Funding Regulations will be made available on the CBI website shortly. As noted in our AMIF bulletins of June 2019 and October 2021, the CBI has been gradually moving towards financial services firms paying 100 per cent of the costs of financial services regulation and supervision. Fees for funds and funds service providers have been due to increase to 100% recovery rates by levy year 2021 (which is levied this year). Schedule A of the regulations sets out the levies (and any supplementary levies) applicable to each industry category. Category E of Schedule A (pages 20-22 inclusive) sets out the levies for Investment Funds, Alternative Investment Fund Managers and other Investment Fund Service Providers.

For more information please contact a member of the Asset Management & Investment Funds team.

Date published: 20 September 2022