Tracker, Financial Services Regulation & Compliance - Funds

DOMESTIC

Central Bank Markets Update; updated AIF Rulebook, AIFMD Q&A, Feedback statement on CP86, Guidance for Fund Management Companies, Revised UCITS Guidance

The 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 on Fund Management Companies 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 of 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. (This Consultation is open until the 27 January 2016).

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.

Central Bank Report on Anti-Money Laundering, Countering the Financing of Terrorism and Financial Sanctions Compliance in the Irish Funds Sector

The Central Bank issued its Report on Anti-Money Laundering, Countering the Financing of Terrorism and Financial Sanctions Compliance in the Irish Funds Sector. The report is based on funds sector on-site inspections carried out by the Central Bank over the course of 2014, supplemented by risk evaluation questionnaires completed by funds and fund service providers and submitted to the Central Bank for assessment. While the funds sector in Ireland is the specific focus of the report, many of the issues raised are relevant to the broader financial services sector in Ireland. This is the third in a series of reports issued by the Central Bank on the topic of AML/CFT this year. The Report on the Irish Funds Sector identifies similar issues for those raised for other sectors, including in relation to:

  • The carrying out of appropriate customer risk assessments;
  • Outsourcing and reliance on third parties;
  • Board responsibility and corporate governance structures for AML/CFT;
  • Appropriate policies and procedures (including specific procedures for discontinuing a business relationship where a customer fails to provide sufficient customer due diligence documentation);
  • Training;
  • The application of simplified customer due diligence;
  • On-going monitoring; and
  • Identification and escalation of suspicious transactions;
  • Terrorist Financing and EU Financial Sanctions.

EU & INTERNATIONAL

IOSCO report on standards for custody of collective investment scheme assets

On 10 November 2015, the International Organization of Securities Commissions (IOSCO) published its final report on standards for the custody of collective investment scheme (CIS) assets. The report sets out eight standards (in two sections) aimed at identifying the core issues that should be kept under review by the regulatory framework to ensure investors' assets are effectively protected.

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

Date published: 03 December 2015