The Irish Government has passed the necessary implementing legislation applying the UCITS V Directive ("UCITS V") at a national level. The European Union (Undertakings for Collective Investment in Transferable Securities) (Amendment) Regulations 2016 ("UCITS Regulations") were signed into law by the Irish Minister for Finance on 21 March 2016. UCITS V amends the regulatory framework for Undertakings for Collective Investment in Transferable Securities ("UCITS") to address issues relating to the depositary function, manager remuneration and administrative sanctions. Ireland is among the first of the EU member states to implement UCITS V.

While UCITS V is now applicable in Ireland, detailed implementing measures, known as "Level 2 measures", providing further detail on the rules applicable to UCITS' depositaries, are expected to apply from October 2016. On 1 February 2016, the European Securities and Markets Authority ("ESMA") issued a questions and answers document ("UCITS Q&A") providing some welcome guidance relating to the deadlines for updating fund documentation to reflect the new requirements, particularly in light of the different dates for the application of the UCITS V Directive and the Level 2 measures and the consequences for updating depositary agreements. Despite the flexibility afforded by the UCITS Q&A, most depositaries have been keen to ensure that their depositary agreements have been updated to reflect the new UCITS V requirements as soon as possible following the applicable date of the UCITS Regulations. Please see our February Investment Funds Update providing further information in relation to ESMA's UCITS Q&A and the timing of fund documentation updates.

The UCITS Regulations may be accessed here.

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