Ireland: Global Registration Services – Market Update Q1 2019

Last Updated: 16 May 2019
Article by Emma Conaty and Erin Meehan

AIFMD

CBI updated AIFMD Q&A 

On 4 February the Central Bank of Ireland ("CBI") issued its 31st Edition of AIFMD Q&A, which includes a new Q&A at ID 1129 on Irish QIAIFs with UK AIFMs.

ESMA updated AIFMD Q&As 

On 29 March 2019 ESMA published its updated AIFMD Q&As. Two Q&As have been added on the calculation of leverage under AIFMD.

European Parliament approves cross border distribution of collective investment funds proposals 

On 16 April 2019 the European Parliament adopted provisional texts on the draft regulation on facilitating cross border distribution of collective investment funds, amending the EuVECA and EuSEF Regulations and covering marketing communications and EU Member States' marketing requirements; and the proposed directive amending the UCITS Directive and AIFMD relating to, among other things, pre-marketing and the discontinuance of marketing. See our previous client update from 8 February 2019. 

Brexit

FCA TPR notification window 

On 7 January 2019 the UK FCA announced the opening of the Temporary Permissions Regime ("TPR") window. As it currently stands, the notification window is open to 30 May 2019, following the delay in the UK's withdrawal from the EU.

Those firms, UCITS and AIF management companies who wish to temporarily continue their business in the UK under the TPR following the exit day have until 30 May 2019 to complete the application via the Connect system.

Management companies who completed the TPR application before the deadline was extended must contact the FCA in order to re-open their application. Requests to re-open the TPR application should be submitted to the FCA via email ( [email protected]) by 16 May 2019 and should include the management company's Firm Reference Number ("FRN").    

Europe

France 

AMF updated guide to drafting collective investment marketing materials and distributing collective investments

On 3 January 2019 the AMF published the revised guide (DOC 2011-24) which gives detailed guidance in relation to the drafting and distributing of CIS marketing materials. The guide covers structured funds, index funds, funds using Constant Proportion Portfolio Insurance ("CPPI") strategies, SOFICAs, real-estate funds and authorised venture capital funds.

AMF 2019 regulatory fees 

On 4 April 2019 the AMF published a new declaration form which is to be completed by foreign registered UCITS and AIFs which have received authorisation for marketing in France and are subject to a fixed annual duty. The declaration includes a section with automatic calculation of the amount owing for each UCITS or AIF. 

Italy

CONSOB DEPROF operating manual

On 1 January 2019 the new version of the DEPROF operating manual was introduced in order to facilitate the compilation and improve functionalities of the system.

The following changes are as follows:

  1. ELTIF: Addition of a new type of close fund that is domiciled in Italy or abroad.
  2. Performance fees: Are compulsory for any fund that is domiciled in Italy or abroad. If performance fees are applicable one of the following options should be selected: i) not provided ii) not received over the past year iii) received over the past year.
  3. In the case iii), when fees had been received, the percentage applied must be indicated, detailing the effective amount received over the past year by the fund as reported in the KIID.

CONSOB 2019 fees and payment deadlines

CONSOB has announced the regulatory fees for 2019 (currently available in Italian only) for UCITS and AIFs which are currently distributed in Italy. CONSOB will send payment notices to the relevant contact person in the UCITS or management company who is indicated in the CONSOB fee reporting. 

The following fees apply for foreign UCITS distributed to professional investors:

  • Stand-alone fund: €3,895
  • Umbrella fund: €3,895
  • Fees for foreign UCITS distributed to non-processing retail investors:
  • Stand-alone fund: €3,895
  • Umbrella fund: €3,895 plus €1,945 per active sub-funds distributed to retail investors in Italy starting from the third sub-fund plus where relevant €1,375 per sub-fund that was closed for subscription in 2018 but still has Italian investors (Sub-funds that are not distributed to retail investors are included in the fee of €3,895.)

Liechtenstein

Registration fees for foreign UCITS and AIFs

The FMA has published updated payment guidelines in relation to fees for registering foreign UCITS and AIFs. The FMA now require an upfront payment of CHF 500 per single fund and for an umbrella fund CHF 500, plus CHF500 for each sub-fund. 

Luxembourg

CSSF Circular 19/708

On 29 January 2019 the CSSF issued Circular 19/708 on the electronic transmission of documents by undertakings for collective investments ("UCIs") to the CSSF.  It covers UCIs, which include SEPCAVs ("Pension Savings Company with Variable Capital") and securitisation vehicles under the Law of March 22, 2004, in addition to fund management companies. The circular’s annex contains a list of documents to be submitted and the relevant nomenclature. The new rules came into effect on 1 February 2019 and these documents can only be transmitted to the CSSF electronically through a secured electronic transmission system; e-file or Sofie. The circular is currently available in French only.

Switzerland

Swiss distribution rules changes

As noted in our recent client update on 23 April 2019, changes are expected to the Swiss regulations on the obligations of foreign and domestic distributors of investment funds. A new Federal Act on Financial Services Act ("FinSa") and Federal Act on Financial Institutions ("FinIa") are expected to come into effect on 1 January 2020 and will lead to greater (although not complete) alignment between the Swiss rules and EU rules under MiFID II. FinIa contains a new authorisation requirement for independent asset managers and FinSa imposes new obligations on foreign and Swiss distributors of investment funds. 

Asia Pacific

China

CBI approves China Bond Connect

On 21 March 2019 the CBI announced that it will allow Irish-domiciled UCITS and AIFs to invest in the Chinese interbank bond market via Bond Connect. Bond Connect is a scheme that enables investors from mainland China and overseas to trade in each other's bond markets through connection between the mainland and Hong Kong financial exchanges and supporting infrastructures.

Hong Kong

SFC Code on Unit Trusts and Mutual Funds

On 1 January 2019 the SFC published an updated Code on Unit Trusts and Mutual Funds ("UT Code") and associated revised forms for authorisation and maintenance of filings of domestic and foreign funds in Hong Kong. These amendments followed the updated consultation paper which sets out proposed amendments the regulatory regime for SFC authorised funds and deal with any risks posed by financial innovation and other market developments. 

The main changes relating to the revised UT code include:

  • Developing existing requirements for money market funds;
  • Developing existing requirements for unlisted index funds and index tracking exchange traded funds;
  • Authorising registration of active exchange traded funds;
  • Codifying the requirements for registering closed-ended funds;
  • Improving operational and disclosure requirements relating to valuation and pricing, termination of fund and financial reporting;
  • Removal of references to Chapter 8.3 (warrant funds), Chapter 8.4A (futures and options funds)and Chapter 8.5 (guaranteed funds);
  • Offering greater flexibility in permitted investments for plain-vanilla equity and bonds specifically regarding investments in derivatives in non-hedging purposes; and
  • Strengthening requirements for key operators of the fund.

On 18 January 2019 the SFC published a presentation detailing the above mentioned changes to the UT code.

SFC FAQs on open-ended fund companies

On 11 January 2019 the SFC published updated FAQs adding question 21 which relates to the OFC structure in establishing closed-ended funds. An OFC is a corporate fund vehicle with a variable capital and it is not excluded from imposing redemption restrictions.

The General Principles in the OFC Code state that where an OFC imposes redemption restrictions, these restrictions should be clearly identified in the OFC's offering documents.  A further update to the FAQs was issued on 26 March 2019 which included amendments to question 4 on fees payable for the establishment of an OFC. 

SFC circular on licensing forms and annual returns

On 2 February 2019 the SFC released a circular relating to the new licensing forms and mandatory electronic submission of annual returns and notifications. A further circular was published on 25 March 2019 to all intermediaries, responsible officers and representatives in relation to the arrangements for the collection of annual licensing fees. 

New unified tax exemption for onshore and offshore privately – offered funds

On 1 April 2019 the Hong Kong Inland Revenue (Profits Tax Exemption for Funds) (Amendment) Bill 2018 came into force. This represents an important development for Hong Kong's privately-offered funds industry. The amendments to the Hong Kong profits tax exemption regime will "unify" the tax exemption treatment for onshore and offshore privately-offered funds operating out of Hong Kong. The new regime has been designed to deal with the concerns raised by the Council of the European Union, in particular, the perceived "ring-fenced features" of the Hong Kong tax regime. In addition the legislation will improve the competitiveness of Hong Kong's fund industry by establishing a level playing field for all privately-offered funds which operate in Hong Kong and are subject to Hong Kong income tax, whether offshore or onshore.

FAQs on exchange traded funds and listed funds and leveraged products

On 2 April 2019 the SFC published their updated FAQs on Exchange Traded Funds and Listed Funds. The update includes the addition of question 12A which details if an ETF manager can provide remunerations and/or incentives to market makers for providing liquidity in the secondary market trading of SFC-authorised ETFs.

The SFC also updated their FAQs on leveraged and inverse products. A new question 19A deals with a leveraged and inverse product manager providing remunerations and/or incentives to market makers in the secondary market trading of SFC-authorised leveraged and inverse products.

How the Maples Group can help

Maples Group Global Registration Services ("Maples Group GRS") supports UCITS1 and AIFMs1 in their multi-market distribution strategies by providing an integrated global network of experts coordinated by a dedicated central team supporting all legal and regulatory aspects governing the cross border marketing of investment funds on both a private placement and public offer basis. 

Footnote

1 Domiciled in Ireland and Luxembourg.

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
Emma Conaty
Similar Articles
Relevancy Powered by MondaqAI
 
In association with
Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please 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