Ireland: Investment Funds Update May 2015

With respect to activity on the legal and regulatory agenda for asset management and investment funds, the Asset Management Team at Matheson would like to brief you on a number of recent and upcoming Irish and European developments. 

Central Bank Publishes Investor Money Regulations 

Following industry negotiations, the Irish Investor Money Regulations have now been published by the Central Bank of Ireland (the "Central Bank").  These regulations seek to protect client assets and are applicable to fund service providers including administrators, custodians, transfer and registration agents.  The rules have been introduced on a statutory footing, and will come into effect on 1 April 2016.  At a Central Bank industry forum held on 20 May 2015 at which Matheson attended, the Central Bank's Client Asset Specialist Team (CAST) noted that it will work with the dedicated Irish Funds Industry Association ("IFIA") client asset working group to deal with practical issues which arise as firms consider implementation.  It was also indicated that a Q&A on the regulations is being developed and will be issued in due course.  Firms are required to have an Investor Money Management Plan (IMMP) finalised and signed off within three months of 1 April 2016, and CAST has indicated that it is happy to work with firms on their structures and processes.  The IMMP will be a critical document in the context of the governance and risk management in relation to the fund service provider's investor money obligations, and the Central Bank has confirmed that it will not be issuing a pro-forma IMMP template, as this document must be tailored to the relevant firm's business model and complexity.  The Central Bank intends to make use of thematic reviews post July 2016 to assess the standard of IMMPs and emerging practices in this regard.  It has confirmed, however, that industry feedback will be considered in order to communicate good and bad practices and to assist with development of the quality of IMMPs. Read more.

Companies Act 2014 to Apply from 1 June 2015 

The commencement order for the Companies Act 2014 (the "Act") was published on 1 May 2015 and, as expected, it has been confirmed that the vast majority of the provisions of the Act will be commenced on 1 June 2015.  The limited number of provisions that do not commence on that date include obligations relating to financial statements, which will only apply in respect of a financial year commencing on or after 1 June 2015.  The Act essentially consolidates Irish companies' legislation but also introduces a number of important innovations and changes.  Management companies and alternative investment fund managers incorporated in Ireland will be impacted by the Act to a greater extent than investment companies.

Please see our dedicated Companies Act 2014 website page for more information on the changes introduced by the Act and the implications for investment companies and fund managers. 

European Commissioner Comments on EU Financial Services Law and the Capital Markets Union 

Speaking at a conference in London on the Capital Markets Union, the European Commissioner for Financial Stability, Financial Services and Capital Markets Union, Lord Jonathan Hill has explained that, this year, the Commission intends to bring forward just one fifth of the number of new legislative initiatives as was the case in a typical year in previous Commissions.  Commissioner Hill has stated that there will be less new legislation in the future and more focus on bedding-in the reforms of recent years, together with an even greater focus than before on proportionality. 

He noted that, over the last five years, the Commission had to legislate at speed in the context of the financial crisis.  His view is that a new phase is now being entered, where it is necessary to think more acutely about the impact of regulation being passed on jobs and growth; to take a look at the combined effect of the legislation, to see whether there have been unintended consequences; and if the evidence does show that the rules are not proportionate to the risks posed by different types of institution, or if it shows that in certain areas the combined effect of different pieces of legislation is working against the Commission's priority of jobs and growth, to have the confidence to adapt the existing framework.

A key initiative in the work programme of Lord Hill's Commission is the build a Capital Markets Union ("CMU").  The CMU is an ambitious project to create a single market for capital across all EU member states by 2019.  It is intended to improve access to financing for businesses across Europe and investment projects such as infrastructure, and to provide for greater diversification in the funding of the European economy. Read more.   

ELTIFs: Regulation Published in the Official Journal of the European Union 

On 19 May 2015, the regulation on European Long Term Investment Funds ("ELTIF Regulation"), which introduces ELTIFs to the market, was published in the Official Journal of the EU.  The ELTIF Regulation comes into force 20 days after that publication, and applies throughout member states of the EU from 9 December 2015.  ELTIFs are seen as a beneficial new regulated European fund "brand" investing in companies and projects that need long-term capital.  ELTIFs are available for investment by retail and non-retail investors, and are permitted to operate a cross-border EU sales passport. Read more.

Money Market Funds: European Parliament Approves Revised Text 

The European Parliament voted to approve an amended text prepared by the Committee on Economic and Monetary Affairs ("ECON") on the proposed regulation on money market funds by a vote of 487 votes to 155 (with 51 abstentions) at its plenary sitting on 29 April 2015.  The approved version of the legislation differs significantly from that originally published by the Commission.   Read more.

Retail AIFs and UCITS: New KID on the Block 

With an application date of 31 December 2016, the regulation on packaged retail and insurance based investment products introduces a new standard-form product information guide called the key information document for retail non-UCITS.  A transitional period under the PRIIPs Regulation applies in relation to UCITS, which are already required to provide a key investor information document similar to the KID.  Specifically, those managing or selling UCITS are exempt from the requirement to produce a KID pursuant to the PRIIPs Regulation until 31 December 2019, at which time the key investor information document will be replaced by the KID. Read more.

UCITS Mergers: ESMA Provides Clarification on Approach to Past Performance 

In an update to its Q&A document on the UCITS Key Investor Information Document, the European Securities and Markets Authority ("ESMA") has now clarified the treatment of past performance information in the case of UCITS mergers - where the receiving UCITS is a newly established UCITS with no performance history and is in effect a continuation of the merging UCITS.  Read more.

Benchmark Regulation: Proceeds to Trialogue Stage 

On 19 May 2015, the European Parliament voted to approve the proposed EU legislation to regulate indices used as benchmarks in financial instruments and financial contracts (the "Benchmark Regulation").  This vote means that trialogue negotiations between the European Parliament, the Council of the EU and the Commission can now proceed, with a view to reaching agreement on the final text possibly before the end of this year.  Read more.

Preparing for UCITS V 

There is now less than a year to prepare for the implementation of the UCITS V directive, as EU member states must adopt and publish the laws and regulations necessary to comply with UCITS V by 18 March 2016.  With respect to next steps, we estimate that a number of implementing measures will be adopted by the Commission before the transposition deadline.  UCITS V introduces new rules in relation to depositaries, the remuneration policies of UCITS managers and a harmonised minimum sanctions regime across member states.  For further information on UCITS V and its key provisions, please see our suite of UCITS briefing notes.

Listings: New Irish Stock Exchange NAV Submission Process Due September 2015 

In September 2015, the Irish Stock Exchange ("ISE") will introduce a new process for submitting Net Asset Values ("NAV") in relation to listed funds.  The new process will operate through the ISE's online portal and will provide a single centralised location for users to access ISE services.  Read more.

Matheson in the News

Finally, we bring you a roundup of some of Matheson's high profile industry awards and activities in the last number of months. Read more.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:
  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.
  • Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.
    If you do not want us to provide your name and email address you may opt out by clicking here
    If you do not wish to receive any future announcements of products and services offered by Mondaq you may opt out by clicking here

    Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

    Use of

    You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


    Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

    The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


    Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

    • To allow you to personalize the Mondaq websites you are visiting.
    • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
    • To produce demographic feedback for our information providers who provide information free for your use.

    Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

    Information Collection and Use

    We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

    We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

    Mondaq News Alerts

    In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


    A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

    Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

    Log Files

    We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


    This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

    Surveys & Contests

    From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


    If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


    From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

    *** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .


    This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

    Correcting/Updating Personal Information

    If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

    Notification of Changes

    If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

    How to contact Mondaq

    You can contact us with comments or queries at

    If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.

    By clicking Register you state you have read and agree to our Terms and Conditions