Central Bank Markets Update; updated AIF Rulebook, AIFMD Q&A, Feedback statement on CP86, Guidance for Fund Management Companies, Revised UCITS Guidan
The Central Bank of Ireland (Central Bank) published a new Markets Update (Issue 7 2015, dated 4 November) which includes:
- AIF Rulebook November 2015 - Updated in respect of the organisational requirements set out in Chapter 3- AIFM requirements, which follow the conclusion of CP86.
- Fund Management Company Boards - Feedback statement on consultation on delegate oversight guidance.
- Fund Management Companies – Guidance, which follows the conclusion of CP86.
- AIFMD Q&A 17th Edition - 4 November 2015 with revised Q&A 1030 (Non EU AIFM) and a new Q&A 1100 (which points out that the Central Bank is working on guidance concerning the holding subscription and redemption monies for individual sub-funds, as fund assets, within a single account in the name of the umbrella fund).
- UCITS Q&A 9th Edition - 4 November 2015 with new Q&A 1049 - 1056 which concern the Central Bank (UCITS) Regulations (including transitional arrangements) and an amended Q&A 1043 (concerning prospectus disclosure of long/short positions).
- Updated Prospectus Handbook - November 2015.
- CP97 - Consultation on Central Bank Investment Firm Regulations.
Also on 4 November 2015, the Central Bank issued revised UCITS Guidance in respect of Permitted Markets (at paragraph 1) and UCITS FDI and EPM at paragraphs 126-128. It is worth noting that UCITS management companies authorised before 1 November 2015 must provide for the managerial functions listed in Schedule 10 by 30 June 2016. New UCITS management companies authorised after 1 November 2015 must have these managerial functions in place upon authorisation (UCITS Q&A 1053). Accordingly existing UCITS management companies, AIFMs, self- managed UCITS companies and ICAVs and internally –managed AIFs will need to update their business plans or programmes of activity by 30 June 2016.
It is also worth noting that the Fund Management Company Boards - Feedback statement on consultation on delegate oversight guidance states, in response to submissions concerning the distinction between the role of designated persons and directors, and pointing out that Irish funds should not need to appoint another Irish delegate (in addition to the administrator and depositary) in order to be able to meet the Central Bank’s requirements on managerial functions, that the Central Bank does not require Irish funds to appoint another Irish delegate to carry out the management roles. Matters concerning designated persons will be dealt with in a future Central Bank consultation.
Please speak with your usual contact in the A&L Goodbody Asset Management & Investment Funds team for more detailed analysis of this material.