Tracker, Financial Services Regulation & Compliance - Funds
Address by Director of Market Supervision, Gareth Murphy, at the Irish Funds Annual Conference
Gareth Murphy, Director of Market Supervision at the Central Bank of Ireland (Central Bank) addressed the Irish Funds Annual Conference. Mr Murphy focussed particularly on six areas related to fund management companies, directors’ time commitments, NAV calculation, the possible extension of the AIFMD 3rd country passport, capital markets union, and shadow banking.
Board and Corporate Governance Requirements
The Central Bank published a document for Fund Management Company Boards including a Feedback Statement on CP86 (Part I), Consultation on Delegate Oversight Guidance (Part II), Publication of Guidance on Organisational Effectiveness (Part III), Publication of Guidance on Directors time commitments (Part IV), Next steps (Part V).
Revised AIF rulebook
The Central Bank issued a revised AIF Rulebook with a new definition which is relevant in the context of the requirement to have 2 Irish resident directors for funds and fund service providers. Irish resident is defined as "a person who is present in Ireland for the whole of 110 business days per year".
Updated AIFMD Q&A
The Central Bank issued an updated AIFMD Q&A (13th edition) with new Q&As. In particular:
- IQ.1030 on the transitioning of professional investor funds and QIAIFs which can continue to be managed by non-EU AIFMs under the existing transitional arrangements until at least 22 October 2015. At that time this position will be revisited and, if necessary, revised to align it with the European Commission’s decision (on, amongst other things, the application of the AIFMD passport to non-EU AIFMs) and any transitional arrangements provided.
- IQ.1058 (somewhat revised) on when the NU Series of Notices will cease to apply to a professional investor fund and what rules will apply instead.
- IQ.1089 to 1093 (new) on marketing of unauthorised AIFs.
Updated UCITS Q&A
The Central Bank issued an updated UCITS Q&A (5th edition) with a new Q&A 1013 clarifying that an investment fund which re-domiciles to Ireland as a UCITS may disclose its past performance in its KIID for to the period when it was domiciled outside Ireland where the UCITS management company confirms that: the UCITS investment policy, strategy and portfolio composition have not been substantially altered as a consequence of the transfer to the UCITS regime; there is no change to the entities involved in the investment management of the UCITS; it is satisfied that the past performance data is accurate; and appropriate disclosure will be included with the past performance in the KIID stating that the data relates to a period when the investment fund was domiciled outside Ireland and was not authorised as a UCITS.
EuSEFs and EuVECAs
The Central Bank has published application forms for EuVECA managers and application forms for EuSEF managers.
On 12 June 2015 the Central Bank published Issue 3 of 2015 of its Markets Update which looked at inter alia:
Central Bank of Ireland
- Address by Martin Moloney, Head of Markets Policy, to the UCD Sutherland School of Law Conference on Islamic Finance.
- Central Bank of Ireland publishes Fund Management Company Boards document.
- Central Bank of Ireland publishes revised AIF Rulebook.
- Central Bank of Ireland response to European Commission Green Paper on Capital Markets Union.
- Statutory Instruments for European Social Entrepreneurship Funds and European Venture Capital Funds signed by Minister for Finance.
- Q&A Update concerning the Companies Act 2014.
- AIFMD: Thirteenth Edition of the AIFMD Q&A published. UCITS: Fifth Edition of the UCITS Q&A published.
European Securities and Markets Authority (ESMA)
- European Securities and Markets Authority calls for modification of UCITS Directive.
- European Securities and Markets Authority publishes updates to Q&As on the AIFMD application.
EU AND INTERNATIONAL DEVELOPMENTS
Good practices on reducing reliance on CRAs in asset management
On 8 June 2015, IOSCO published a final report on good practices on reducing reliance on credit rating agencies (CRAs) in asset management. IOSCO developed eight good practices (included as Appendix A to the report), aimed at addressing any potential remaining over-reliance by asset managers on credit ratings. The good practices are addressed to national regulators, investment managers and investors (where applicable).
For further information please contact a member of the Financial Regulation team.
Date published: 03 July 2015