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On 10 July 2026, the Central Bank of Ireland (CBI) published its final package of updates to the Irish UCITS domestic framework following Consultation Paper 161 (CP161). This comprises:
The revised domestic framework reflects UCITS VI (Directive 2024/927 or AIFMD II) as transposed into Irish law by the European Union (Undertakings for Collective Investment in Transferable Securities) (Amendment) Regulations 2026 (Department of Finance UCITS Regulations) and also updates a number of Irish UCITS requirements to reflect domestic policy developments since the 2019 regime was published.
Irish UCITS and UCITS management companies should assess prospectus disclosures, constitutional documents, performance fee methodology disclosures, liquidity management tool (LMT) frameworks, reporting processes and operational procedures to ensure alignment with the amendments.
Background
On 9 September 2025 the CBI published CP161 proposing to repeal and replace the 2019 Central Bank UCITS Regulations and to update the Guidance. The consultation closed on 5 November 2025. Following that consultation, the CBI published the final Central Bank UCITS Regulations, revised Guidance and CP161 feedback statement on 10 July 2026. Most of the CP161 proposals have been adopted, with a number of refinements made in response to industry feedback.
Performance fees
The Central Bank UCITS Regulations and the Guidance have been amended to include:
The revised framework removes the depositary’s direct obligation to verify performance fees charged to investors. The UCITS management company must instead ensure that the depositary, or a competent person appointed by the UCITS management company and approved by the depositary, verifies that procedures have been effectively implemented so that any performance fees payable and accrued under the UCITS performance fee payment cycle are calculated in accordance with the fund’s constitutional document and prospectus.
The Guidance incorporates ESMA’s Guidelines on Performance Fees and has been updated to align with the amended Central Bank UCITS Regulations.
NAV based fees and prospectus disclosure changes
A new prospectus disclosure requirement applies to NAV-based fees. The prospectus must disclose the maximum fee payable for any recurring fees calculated on the basis of NAV and deducted from fund assets, addressing the CBI’s concern that fees such as research fees were not being clearly disclosed. The Feedback Statement also confirms that the possibility to pay fees or expenses to the distribution, paying agent, or representative agent out of the assets of the UCITS at normal commercial rates remains unchanged.
The former requirement to disclose standardised pro forma anti-dilution levy language has been removed, since the European LMT framework and the general prospectus LMT disclosure requirements address transparency. The Central Bank UCITS Regulations also introduce the ability for a UCITS to apply a charge on the redemption of its units other than a redemption fee LMT under the Department of Finance UCITS Regulations (which takes account the cost of liquidity).
Further amendments include:
Exchange-traded funds
UCITS ETFs may now automatically apply different dealing 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, and Q&A ID 1016 has been incorporated into the Central Bank UCITS Regulations. The UCITS ETF identifier may be used at either sub-fund or share class level as appropriate. Where a UCITS has both listed and unlisted share classes, those classes must be clearly identified so investors can distinguish between them.
A reference to the PRIIPs KID has been added to the list of documents in which an actively managed ETF must disclose that the ETF is actively managed and how it will meet its stated investment policy including, where applicable, its intention to outperform an index.
Dealing in specie
The Central Bank UCITS Regulations distinguish between redemption in kind as an LMT and a separate exchange of assets mechanism as part of a UCITS redemption policy that can be used to meet redemption requests. The CBI has also removed wording that would have limited the ETF carve out to cases where the original subscription was made in specie.
The CBI feedback statement also aligns with the European LMT framework that redemption in specie may only be activated to meet redemptions requested by professional investors.
Liquidity management tools
The Central Bank UCITS Regulations introduce new operational requirements for LMTs. UCITS must disclose in the prospectus the selected LMTs and the terms and conditions under which those tools may be activated and deactivated. When selecting LMTs under Regulation 28A of the Department of Finance UCITS Regulations, the management company should consider selecting at least one quantitative-based LMT from Schedule 5A (redemption gates, extension of notice period, or redemption in kind) and at least one anti-dilution tool (redemption fees, swing pricing, dual pricing, or anti-dilution levy). This is subject to the money market fund (MMF) derogation in Regulation 28A(4) and the CBI considers it important that the management company consider the merit of selecting at least one tool of each type, aligning with revised Financial Stability Board (FSB) and International Organization of Securities Commissions (IOSCO) policy recommendations.
Following industry feedback, the CBI removed the proposed requirement to notify it whenever a LMT is activated or deactivated other than in the ordinary course of business since that information will be contained in the Daily Investment Funds Return.
The suspension provisions have been amended so that the UCITS management company must notify the CBI without delay when it activates or deactivates the suspension of calculation of NAV and/or subscriptions, repurchases or redemptions. Where the competent authority of a home Member State of a UCITS domiciled outside of Ireland exercises the equivalent suspension power, the UCITS management company must notify the CBI without delay when it becomes aware of that instruction.
Side pockets may now be established by physical or accounting segregation for assets whose economic or legal features have changed significantly or become uncertain due to exceptional circumstances if permitted in the constitutional document. The CBI aligned this side pockets wording with ESMA’s regulatory technical standards (RTS) terminology on LMTs. The CBI also removed the proposed standalone swing pricing provision as duplicative of the general LMT operational requirements and removed the previous 10% threshold before a redemption gate could be imposed.
Money-market instruments and MMFs
The CBI has not proceeded with the CP161 proposal to import a 10-basis point deviation limit for non-MMF UCITS investing in money market instruments, retaining the existing flexibility to use amortised cost valuation where it does not result in a material discrepancy from mark to market valuation. A UCITS that is a short term MMF or standard MMF must at all times comply with the stress testing requirements in Article 28 of the Money Market Funds Regulation and related ESMA Guidelines. The efficient portfolio management provisions in Regulations 23 to 25 do not apply to UCITS MMFs.
Reporting terminology has been updated, replacing “Monetary Union Member State” with “euro area Member State” for European Central Bank reporting requirements and a move to periodic returns to the CBI in the form and specified by the CBI on its website.
Connected party transactions
The connected party regime has been extended to include transactions between the UCITS and any unitholder, other than for transactions relating to their own units, including subscriptions, redemptions, conversions or dividend payments.
Reporting and governance updates
Current provisions on monthly and quarterly returns have been replaced with a single provision enabling the CBI to specify future reporting requirements on its website. The designated email address requirement continues to apply at umbrella fund level rather than sub-fund level. Notifications to the CBI of director resignation, removal or other termination of service must be made by the UCITS management company without delay (formerly immediately). Similarly, UCITS management companies must notify the CBI without delay of any situations or events which impact, or potentially impact, to a significant extent on the relevant UCITS or management company.
UCITS management companies must have adequate resources to manage and monitor the services provided to each UCITS under management. The CBI also retained minimum residency requirements for directors and designated persons and its discretion to impose additional requirements at authorisation based on the nature, scale and complexity of the firm and confirmed that there is no non-EU equivalence for the purposes of the director residency provision.
Next steps
The amended Central Bank UCITS Regulations are already in force. Fund managers should review the updated Central Bank UCITS Regulations and Guidance and consider whether amendments are required across prospectuses, constitutional documents, performance fee documentation and operational procedures.
Please contact a Eimear Keane, Partner or a member of our Asset Management and Investment Funds team to discuss the impact of the updated Central Bank UCITS Regulations or Guidance.
Date published: 15 July 2026
