The Front Page, Asset Management & Investment Funds: Irish Practice Developments

Some Approaching Deadlines

  • 30 July 2017. Share class(es) which do not comply entirely with the principles set out in paragraph 9, Section 3.1 of ESMA’s Opinion ‘Share classes of UCITS’, dated 30 January 2017  should be closed for investment by new investors on or before 30 July 2017 in accordance with the Central Bank UCITS Q&A (no. 1077).
  • 11 August 2017. ETF Discussion Paper. Deadline for responses to the CBI discussion paper on Exchange Traded Funds.

Central Bank Brexit FAQ 
The Central Bank of Ireland (Central Bank) issued a Frequently Asked Questions (FAQ) document providing general information to financial services firms who are considering relocating their operations from the UK to Ireland. It will be updated as Brexit negotiations progress and new issues emerge and are resolved. The FAQ gives guidance on the Central Bank's position regarding substance, oversight & control and outsourcing. It also discusses the impact Brexit may have on existing Irish authorised firms and some practicalities such as timing and "dual-hatting" whereby the Central Bank will consider proposals where senior management in a group are gradually transitioned into the Irish business (from other roles in the group) as the Irish business develops. Finally, the FAQ discusses how Brexit may impact anti money laundering requirements.

Update of Investment Limited Partnership and ICAV legislation
The Government has approved the legal drafting of an Investment Limited Partnership (Amendment) Bill to support development of the private equity fund industry. This was flagged in the IFS 2017 action plan under the wider IFS 2020 Strategy. The purpose of the Bill is to enhance and reform the existing Investment Limited Partnership Act 1994 so as to align the legislation with international standards for private equity funds and also to cater for some requirements of AIFMD. 

The drafting of technical amendments to the Irish Collective Asset-management Vehicles Act 2015 to assist with that Act’s operation has also been approved.

Senior Central Bank appointments; Ed Sibley as Deputy Governor, Prudential Regulation and Derville Rowland as Director General, Financial Conduct 
The Central Bank appointed Ed Sibley as Deputy Governor, Prudential Regulation and Derville Rowland as Director General, Financial Conduct. This follows the announcement of a restructuring of financial regulation earlier this year.

Irish Funds Financial Reporting Brief 
The Irish Funds Financial Reporting Working Group prepared a Financial Reporting Brief which provides an overview of changes in financial reporting and regulatory disclosure requirements as relevant to upcoming financial reporting cycles for investment funds. The Financial Reporting Brief includes updates on the following topics;

  • US GAAP;
  • IFRS;
  • FRS 102;
  • Companies Act and related legislative changes;
  • Securities Financing Transactions Regulations; and
  • Central Bank (UCITS) Regulations.

Please speak with your usual contact on the A&L Goodbody Asset Management & Investment Funds team if you wish to see a copy of the Financial Reporting Brief. 

Central Bank Discussion Paper on how digital technology is transforming retail financial services  
The Central Bank issued a Discussion Paper on the Consumer Protection Code and the Digitalisation of Financial Services. The Discussion Paper is open for comment until 27 October 2017. It looks, in particular, at the Consumer Protection Code (which does not apply to Irish authorised investment funds). It; 

  • sets out potential risks to consumer protection from digitalisation;
  • considers six key areas of the Consumer Protection Code where consumer benefits and risks from digitalisation most arise - impact on access to financial services, provision of information, suitability requirements, complaints handling, claims handling, retention of consumer records; and
  • invites views on whether the rules remain appropriate in an increasingly digital financial services environment

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

Date published: 31 July 2017