Asset Management & Investment Funds Publications - UCITS

UCITS


Benchmark Regulations
On 29 June 2016, Regulation (EU) 2016/1011 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (the Regulations) was published in the Official Journal of the European Union (OJEU).
The Regulations are a European legislative response to the LIBOR scandal and the allegations and subsequent investigations into manipulation of the setting of LIBOR, EURIBOR and other benchmarks.

The Central Bank of Ireland has improved certain aspects of the authorisation and post-authorisation process for UCITS and Retail AIFs
The Central Bank of Ireland (Central Bank) has improved certain aspects of the authorisation and post-authorisation process for UCITS and Retail AIFs. The Central Bank will no longer carry out a prior review in relation to:

  • the establishment of new share classes
  • depositary agreements
  • trust deeds (for unit trusts)
  • deeds of constitution (for CCFs)
  • (most) UCITS financial indices

This is subject to receipt of relevant Central Bank application forms and written confirmations.

The Central Bank has also issued an application form for UCITS merger applications which reflects the requirements under the UCITS Regulations 2011 and does not introduce any new requirements.

Central Bank moves to self-certification for most UCITS using financial indices
On 8 October 2018, the Central Bank of Ireland (Central Bank) introduced:

  • a self-certification regime in respect of (most) financial indices used by UCITS for investment or efficient portfolio management purposes
  • a pre-approval submission to the Central Bank will be required in limited circumstances
  • no certification is required where an index is used solely as a performance benchmark.

The changes are reflected in updated guidance on the use of financial indices by UCITS (the Guidance).

The Securitisation Regulation
The Securitisation Regulation (Regulation 2017/2402) (the Regulation) came into force on 17 January 2018 and will be directly applicable across the EU from 1 January 2019. It is part of the European Commission’s reform measures on the EU’s capital markets union. It contains significant changes to the current securitisation regulatory framework in its consolidation of the existing patchwork of sector-specific rules. It also introduces rules for issuing simple, transparent and standardised (STS) transactions. These harmonised rules impact UCITS management companies, AIFMs, internally-managed UCITS and AIFs and certain other types of investor (collectively, Institutional Investors) that engage in certain transactions. 

Money Market Reform – update to Reverse Distribution Mechanism
Regulation (EU) 2017/1131 of the European Parliament on MMFs (the MMFR) came into effect on 20 July 2017.

CP119 Central Bank Consultation on amendments Central Bank UCITS Regulations
On 29 March 2018, the Central Bank of Ireland published a consultation paper which includes proposals to amend and consolidate the Central Bank UCITS REgulations (CP119), whihc is the statutory instrument that forms the basis for the Irish regulatory framework for UCITS.

ESMA final Opinion on UCITS share classes
On 30 January 2017, ESMA published its opinion on the use of share classes in a UCITS investment fund in response to the ESMA Discussion Paper on Share Classes of UCITS (the Opinion). The Opinion was issued due to diverging approaches taken by regulators across the European Union and focusses on the extent to which different types of share classes of the same UCITS sub-fund may differ from one another.

Detailed Analysis of UCITS Remuneration Provisions
On 23 July 2015 the European Securities and Markets Authority (ESMA) published a consultation paper in respect of its guidelines on sound remuneration policies under the UCITS Directive and AIFMD (the CP). This consultation closed in October 2015.

UCITS V - Spotlight on the Depositary
A spotlight on UCITS V and how clients are planning and preparing for its impact from a depositary perspective.

Detailed Analysis of Central Bank UCITS Regulations 2015 
On 5 October 2015 the Central Bank of Ireland (Central Bank) published new Central Bank UCITS Regulations which will commence on 1 November 2015 (CB UCITS Regulations).

UCITS - Remuneration Guidelines 
ESMA published their consultation on guidelines on the UCITS V remuneration requirements.