On 5 October, 2015 the Central Bank of Ireland (the "Central Bank") issued a new set of regulations relating to Irish domiciled UCITS, their management companies and their depositaries titled "Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1))(Undertakings for Collective Investment in Transferable Securities) Regulations 2015" (the "CBI UCITS Regulations"). The CBI UCITS Regulations replaced the UCITS Notices with an aim to consolidate into one document all of the conditions imposed by the Central Bank on UCITS, their management companies and depositaries.
Central Bank UCITS (Amendment) Regulations 2016
On 8 June last, the Central Bank issued the Central Bank UCITS (Amendment) Regulations 2016 (the "Amending Regulations"). While the majority of the changes being made to the CBI UCITS Regulations via the Amending Regulations are to correct clerical errors which have been identified in the original legislation since implementation and to ensure consistency with other recently enacted UCITS legislation, the Amending Regulations include the following:
- an obligation on UCITS management companies to ensure that their remuneration policies and practices are consistent with the ESMA Guidelines on Sound Remuneration Policies under the UCITS Directive and AIFMD;
- clarification that UCITS established as self-managed investment companies shall be required to put in place an organization effectiveness role; and
- clarification that UCITS management companies and self-managed investment companies shall be required to comply with (i) the new managerial functions set out in Schedule 10 of the CBI UCITS Regulations and (ii) the obligation to create an organizational effectiveness role by 30 June 2017 (rather than 30 June 2016 as provided in the original legislation) or such other date as may be specified by Central Bank.
Further proposed changes to the CBI UCITS Regulations
Earlier this month, the Central Bank also issued a consultation paper on a second set of proposed amendments to the CBI UCITS Regulations entitled "CP105: Consultation on Amendments to the CBI UCITS Regulations" (the "Consultation Paper"). A link to the consultation paper can be found here.
The Consultation Paper seeks feedback on proposed amendments to the CBI UCITS Regulations relating to the implementation of UCITS V into Irish law and certain other technical changes which have been identified by the Central Bank and the Irish funds industry following the introduction of the CBI UCITS Regulations. In addition, stakeholders are also encouraged to consider whether any amendments to the CBI UCITS Regulations other than those set out in the Consultation Paper may be required.
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