Ireland: Investment Funds Newsletter, November 2015

The latest issue of the Central Bank of Ireland ("Central Bank") Markets Update covers a number of topics on the legal and regulatory agenda for asset management and investment funds. The Markets Update is published by the Central Bank to advise interested parties of recent policy developments related to the way the Central Bank supervises financial markets, investment funds and their service providers.

The most recent issue's primary purpose is to publish further guidance on a number of aspects of corporate governance for fund management companies previously considered in the Central Bank's Consultation on Management Company Effectiveness – Delegate Oversight ("CP86") and in its June 2015 feedback statement. For these purposes, fund management companies include UCITS management companies, alternative investment fund managers ("AIFMs"), self-managed UCITS investment companies and internally managed alternative investment funds.

We have summarised the matters covered in the Central Bank Markets Update below for you, together with additional updates on Irish and European developments which may be of interest. Our asset management partners are available to speak with you should you require any further detail in relation to these matters.

Central Bank Issues Guidance for Fund Management Companies

Included in its Market Update, on 4 November 2015, the Central Bank published a new document titled "Fund Management Companies – Guidance" ("Guidance Paper"), which includes newly finalised guidance on delegate oversight, together with the guidance on directors' time commitments and the organisational effectiveness role previously published in the CP86 feedback statement in June of this year. The Guidance Paper is accompanied by a feedback statement on the June 2015 consultation on the delegate oversight guidance. The Central Bank intends that all future fund management company guidance will ultimately be located in this Guidance Paper.

The following are the key dates by which action is required relating to the Guidance Paper:

Immediately: Fund management companies (including self-managed investment companies) must comply with the delegate oversight guidance.

1 January 2016: From this date, previously authorised management companies and investment funds with directors triggering the directors' time commitment risk indicator specified in the Guidance Paper will receive priority consideration for inclusion in Central Bank thematic reviews where board effectiveness is being assessed.

30 June 2016: According to the June 2015 CP86 feedback statement, existing management companies and self-managed investment companies are required to update business plans / programmes of activity to reflect the new organisational effectiveness role by this date. This transitional period is not provided for in the Guidance Paper or in the recently enacted Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2015 (the "CB UCITS Regulations") and we are currently seeking clarification from the Central Bank as to whether this deadline still applies.

More »

Central Bank Publishes Updated AIF Rulebook

The Central Bank has published an updated version of its AIF Rulebook to reflect the outcome of CP86. In its June 2015 CP86 feedback statement, the Central Bank stated that it would proceed to streamline the existing managerial functions to be performed by UCITS management companies and AIFMs in the manner proposed in CP86, through the restructuring of the overall number of these to six functions, from nine and fifteen respectively. The six managerial functions will be investment management; fund risk management; operational risk management; distribution; regulatory compliance; and capital and financial management.

The organisational requirements for AIFMs in the AIF Rulebook have now been updated to reflect the six streamlined managerial functions. While the same person may perform more than one managerial function, a new rule provides that the same person must not perform managerial functions in relation to risk management and investment management.

The Central Bank will require existing fund management companies and self-managed investment companies to update their business plans / programmes of activity to reflect the revised managerial functions by 30 June 2016.

The latest version of the AIF Rulebook may be accessed here.

AIFMD: Central Bank Publishes Updated Q&A

The Central Bank has published a 17th edition of its AIFMD questions and answers document ("AIFMD Q&A"). The AIFMD Q&A has been amended to state that professional investor funds and qualifying investor alternative investment funds ("QIAIFs") can continue to be managed by non-EU AIFMs under the existing transitional arrangements until the European Commission makes a decision extending the AIFMD passport to non-EU AIFMs.

The AIFM Q&A has also been updated to state that there is no regulatory obstacle to subscription and redemption monies of individual sub-funds, as fund assets, being held within a single account in the name of the umbrella fund. The Central Bank has advised that, as this has not been prior practice in the context of Irish authorised investment funds, it is working on appropriate guidance which will be issued shortly.

More »

UCITS: Central Bank Publishes Updated Q&A

The Central Bank has published the ninth version of its UCITS questions and answers document ("UCITS Q&A") with the addition of eight new questions and one amended question. The new questions relate to the recently introduced CB UCITS Regulations, which came into effect on 1 November 2015.

More »

Updated Central Bank Prospectus Handbook

The Markets Update notes that the Central Bank's Prospectus Handbook has been updated, effective 2 November 2015. The Prospectus Handbook is relevant for issuers of transferable securities which are subject to the Prospectus Directive and certain law firms, listing agents, stockbrokers and investment banks who act as service providers to those issuers. The changes made are technical in nature and include amalgamating certain sections and correcting various typographical errors.

The latest version of the Prospectus Handbook may be accessed here.

Central Bank Publishes CP97 – Consultation on Investment Firm Regulations

The Central Bank has published CP97 – Consultation on Investment Firm Regulations which sets out the Central Bank's proposal to publish an Investment Firms rulebook which will consolidate into one document all of the conditions and requirements which the Central Bank imposes on investment firms. The Central Bank proposes to issue the rulebook in the form of Central Bank regulations under the Central Bank (Supervision and Enforcement) Act 2013. The proposed consolidated rulebook is referred to in the Consultation Paper as the "proposed Central Bank Investment Firm Regulations". This approach is consistent with the Central Bank's recent policy of placing former guidance on a statutory footing, as it has done in the case of the CB UCITS Regulations and has proposed to do in relation to the AIF Rulebook.

Responses to the consultation are requested by 27 January 2016. The consultation paper may be accessed here.

Finance Bill 2015 – Provisions Relevant to Investment Funds

The Finance Bill 2015 (the "Bill") was published on 22 October 2015. The Bill helpfully confirms an exemption from Irish income tax for travel and subsistence expenses reimbursed to non-executive directors who travel to Ireland to attend board meetings. It also extends the "investment management" exemption and amends the definition of "collective investment scheme", reflecting recent developments in the Irish funds industry. The Bill puts in place the necessary legislative framework for the implementation of the OECD's Common Reporting Standard in Ireland.

More »

PRIIPs: European Supervisory Authorities Consult on New KID

On 11 November 2015, the Joint Committee of the European Supervisory Authorities ("ESAs") – which include ESMA, the European Banking Authority and the European Insurance and Occupational Pensions Authority - launched a Joint Consultation Paper on PRIIPs Key Information Documents (the "Consultation Paper") to gather stakeholder views on proposed rules on the content and presentation of the Key Information Document ("KID") to be provided by packaged retail and insurance-based investment products ("PRIIPs"). The Consultation Paper follows two previous discussion papers issued by the ESAs and responses are requested by 29 January 2016. An extensive transitional period applies in relation to UCITS under the regulation introducing the KID and the Consultation Paper is therefore of more immediate significance to retail investor AIFs ("RIAIFs"), which will be required to provide a KID from 31 December 2016.

More »

European Parliament Adopts SFT Regulation

On 29 October 2015, the European Parliament adopted the proposed regulation on reporting and transparency of securities financing transactions ("SFT Regulation"). The regulation includes measures addressing: reporting of SFTs to trade repositories; reporting requirements for funds and requirements on counterparties engaged in rehypothecation. The Council of the EU is now in the process of formally adopting the SFT Regulation, and it will then be published in the Official Journal of the EU ("OJ"). The latest text of the SFT Regulation provides that it will enter into force on the twentieth day after its publication in the OJ and that it will apply from the date of entry into force, with important exceptions in respect of certain provisions.

More »

ELTIF Regulation to Enter into Force in December

The Regulation on European Long Term Investment Funds ("ELTIF Regulation"), which introduces a new long-term investment fund available to retail investors to the market, comes into force on 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. As a regulation, its provisions are directly applicable across member states and therefore no national implementing measures are required. However, Irish regulations providing for certain matters arising from the application of the ELTIF Regulation are expected to be published in advance of 9 December 2015.

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, including an important appointment within the Asset Management Group.

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 Mondaq.com.

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

Authors
 
In association with
Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
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
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

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 or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq 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 of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

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