On 2 May 2014, the Central Bank of Ireland (the "Central Bank") updated its AIFMD Q&A document ("Q&A") clarifying two points relating to funds originally authorised under the pre-AIFMD Non-UCITS regime which are in the process of converting to AIFMD status Currently subject to the Central Bank's Non-UCITS regime (including the NU Notices/Guidance Notes), these funds will instead be subject to the AIF Rulebook with the old regime falling away.
The 9th Edition of its AIFMD Q&A document can be obtained here.
ID 1054 – unregulated master funds
Under the Non-UCITS regime the Central Bank permitted QIFs, in certain limited circumstances, to invest up to 100% of their assets in unregulated master funds. QIFs which wanted to do so needed a derogation from the Central Bank under Section D, Annex 1 to Guidance Note 1/01.
The Central Bank has now clarified that, although that derogation will not be available (because that Guidance Note 1/01 will falls away once the fund becomes subject to the Central Bank's AIF Handbook), AIFs may continue to operate in accordance with the derogation previously given and they are not required to apply to the Central Bank for approval to do so.
ID 1071 - old derogations fall away
The Central Bank has clarified that once an AIF becomes subject to the AIF Rulebook, derogations which were granted to it under the NU Series of Notices will no longer be valid or relevant, other than in the case outlined in ID 1054 above.
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