Financial Services Regulation & Compliance - Funds Oct 2017

DOMESTIC

Michael Hodson, Director of Asset Management Supervision addressed the A&L Goodbody Annual Asset Management & Investment Funds Seminar on 26 October 2017.

26 October 2017. Michael Hodson, Director of Asset Management Supervision delivered a speech to an A&L Goodbody seminar on Asset Management Supervision: The landscape today and 2018 supervision priorities which is available on the Central Bank website.  Mr Hodson outlined recent structural changes introduced in the Central Bank, the Central Bank supervisory engagement model and the Central Bank's regulatory role.

Central Bank UCITS Q&A and AIFMD Q&A

The Central Bank published

  • The 20th edition of its UCITS Q&A with new question 1085 on the maintenance of a designated email address for regulatory correspondence for Irish UCITS. The Q&A expands requirements so that Irish UCITS managed by non-Irish fund management companies must provide the Central Bank with a dedicated email address by 10 November 2017. The email address is required “to facilitate effective and efficient communication between the Central Bank and Irish authorised funds”.
  • The 26th edition of its AIFMD Q&A with new Question 1124 on the maintenance of a designated email address for regulatory correspondence for Irish authorised AIFs. The Q&A expands requirements so that both and Irish authorised AIFs managed by non-Irish fund management companies must provide the CBI with a dedicated email address by 10 November 2017. The email address is required “to facilitate effective and efficient communication between the Central Bank and Irish authorised funds”.

Central Bank levy

The Central Bank published its Guide To Industry Funding Regulations 2017. The levies for Investment Funds, Alternative Investment Fund Managers and other Investment Fund Service Providers are set out in Category E (pages 18/19) of the guide.  The Central Bank also signed the Central Bank Act 1942 (Section 32D) (Investment Funds — Additional Supervisory Levy Regulations 2017).SI 441 of 2017   which will introduce a new supervisory levy. This will be a once off levy for new fund structures and new sub-funds in addition to the annual levy referenced above. This will apply to all funds, whether stand-alone, umbrella fund structures or sub-funds of existing umbrella fund structures, which are authorised or approved on or after 1 December 2017.  The supervisory levy will be billed on or shortly after authorisation or approval and funds will have 28 days to pay it.

EU & International

Michael D’Arcy, Minister of State with special responsibility for Financial Services and Insurance, addressed the A&L Goodbody Annual Asset Management & Investment Funds Seminar on 26 October 2017.

Minister of State Michael D’Arcy attended and spoke at the A&L Goodbody Annual Asset Management & Investment Funds Seminar on 26 October 2017. The Minister's speech is available on the Department of Finance website He pointed out that:

"Ireland is the perfect location for firms looking for an EU base to passport financial services across the Union. In addition to our commitment to the EU we have a number of key factors which make Ireland an attractive location for investment.  Promoting the strengths of our jurisdiction in a concerted manner across both private and public sector stakeholders remains key to the ongoing success of financial services in Ireland - the most globalised sector of our economy.  Pivotal to this is the government's IFS2020 Strategy.  This Strategy, now entering its fourth year of implementation, has been and will continue to be flexible and adaptable to changing needs and external challenges. Next January I look forward to launching a suite of similarly responsive measures in the form of the Strategy's 2018 Action Plan. 

ESMA Q&As on the application of AIFMD and the UCITS Directive

ESMA updated its Q&A on the application of the AIFMD (remuneration and SFTR disclosures)and its Q&A on the application of the UCITS Directive (SFTR disclosures).

ESMA work on the impact of charges on mutual fund returns

ESMA published an article (in its latest Trends, Risks and Vulnerabilities No.2 2017) on the impact of charges on mutual fund returns which included a preliminary analysis of the impact of ongoing fees, one-off charges and inflation on the returns of mutual funds. ESMA then received a mandate from the European Commission requesting the European Supervisory Authorities (ESAs), which include ESMA, to produce recurrent reports on the cost and past performance of the main categories of retail investment, insurance and pension products.

ESMA compliance tables for the guidelines on sound remuneration policies

ESMA issued compliance tables for the guidelines on sound remuneration policies under the UCITS Directive and for the guidelines on sound remuneration policies under the AIFMD. 

EuVECA and EuSEF Regulations

The Council of the EU adopted the Regulation amending the European Venture Capital Funds Regulation and the European Social Entrepreneurship Funds Regulation.

For further information please contact a member of the Financial Regulation team.

Date Published: 8 November 2017​