While funds and their management companies1 may still be taking stock after another busy year in 2023, 2024 is shaping up to be an equally demanding year for industry stakeholders.
In this briefing, we provide an overview of some key dates which should be appearing in the compliance calendars of Irish funds and their management companies as well as a synopsis of some of the legal and regulatory developments we can expect in the next twelve months.2 3
Key Dates
|
Date |
Matter |
Suggested action to be taken |
|
1 January 2024 |
The EU Taxonomy Environmental Delegated Act4, which sets down the technical screening criteria which must be satisfied in order for an economic activity to be deemed as contributing to any of the Taxonomy-related environmental objectives enters into force. The Amending EU Taxonomy Climate Delegated Act5 also enters into force on this date. This regulation makes targeted amendments to the existing EU Taxonomy Climate Delegated Acts to expand on the economic activities contributing to climate change mitigation and climate change adaptation not yet covered by the EU Taxonomy framework, in particular the manufacturing and transport sectors. |
Where relevant, fund management companies should revise internal Taxonomy compliance frameworks to incorporate the revised and additional delegated acts which begin to apply from this date. |
|
1 January 2024 |
All PRIIPS KID issued by Irish funds on or after 1 January 2024, regardless of date of authorisation of the relevant fund, must be filed with the Central Bank of Ireland (Central Bank) from this date. |
Ensure that appropriate compliance arrangements are put in place so that PRIIPS KID issued on or after 1 January 2024 are filed with the Central Bank via its portal. |
|
10 January 2024 |
The revised ELTIF Regulation begins to apply. For further information, please see "ELTIF 2.0" below. |
Monitor the adoption of finalised implementing measures by the European Commission (Commission) under the revised ELTIF Regulation and the publication of the Central Bank's revised AIF Rulebook setting down the domestic supervisory and reporting framework which will apply to Irish-domiciled ELTIFs |
|
18 January 2024 |
Deadline for submission of responses to the Central Bank's consultation paper on macroprudential measures for GBP liability-driven investment funds. For further information please see "Development of the Central Bank's Macroprudential Policy for Investment Funds". |
If desired, submit a response to the Central Bank's consultation paper by the applicable deadline. |
|
31 January 2024 |
Deadline for all Irish UCITS management companies and AIFMs to file annual confirmation of ownership with the Central Bank. |
Filing of confirmation of ownership to be made with the Central Bank by the deadline. |
|
12 February 2024 |
Deadline for submission of responses to the UK FCA's consultation on its overseas fund regime. For further information, see, please see "UK Overseas Funds Regime" below. |
If desired, submit a response to the FCA's consultation paper by the applicable deadline. |
|
20 February 2024 |
All UCITS which continue to prepare a UCITS KIID must file updated KIIDS which contain updated performance data for the period ended 31 December 2023 and which incorporate any other required revisions with the Central Bank no later than 20 February 2024. |
Ensure that all UCITS KIIDs are updated and filed with the Central Bank by the applicable deadline. |
|
29 February 2024 |
Deadline for filing the fund profile return for all Irish authorised sub-funds with the Central Bank. |
Fund profile return to be prepared and filed with the Central Bank by the applicable deadline. |
|
29 February 2024 |
Deadline for filing the annual PCF confirmation for both Irish authorised UCITS management companies/AIFMs and Irish authorised investment funds with the Central Bank under its Fitness & Probity regime. |
F&P confirmation to be filed with the Central Bank by the applicable deadline. |
|
Quarter 1 2024 |
ESMA is expected to publish a Call for Evidence on the review of the UCITS Eligible Assets Directive. For further information, please see "Review of the existing UCITS Eligible Assets Regime" below. |
UCITS management companies should review the Call for Evidence and if desired, respond to same by the applicable deadline. |
|
Quarter 1 2024 |
ESMA is expected to publish a consultation paper on the due diligence requirements under the Securitisation Regulation which will be of relevance to all EU fund management companies and non-EU AIFMs which invest in "securitisations" within the meaning of the Securitisation Regulation on behalf of funds under management. |
Review and if desired, respond to the consultation paper published by ESMA. |
|
29 April 2024 |
The new EMIR Refit reporting regime comes into effect. |
Assess the implications of the EMIR Refit reporting regime and take necessary steps to ensure compliance with the enhanced reporting framework from the application date. |
|
24 May 2024 |
Irish funds authorised before 24 November 2022 which invest 50% or more directly or indirectly in Irish property assets (Property Funds) which are structured as open-ended funds with limited liquidity must comply with applicable provisions of the Central Bank's guidance for Property Funds relating to minimum liquidity timeframes. Separately, all Property Funds, regardless of liquidity profile, must comply with the leverage limit of 60% total debt-to-total assets limit by 24 November 2027. Given the requirement imposed by the Central Bank that any required de-leveraging must be done on a "gradual and orderly manner" and that such de-leveraging should be "significantly progressed" by the end of year three (i.e. November 2025), management companies of impacted Property Funds are likely to be focused on implementing appropriate deleveraging arrangements in the course of 2024. |
Impacted Property Funds should, where necessary, take appropriate steps to ensure compliance with the Central Bank guidance by this date. |
|
27 May 2024 |
New "own funds" capital requirements begin to apply to all Irish fund management companies with additional individual portfolio management permissions authorised by the Central Bank on or before 27 November 2023. |
Impacted management companies should take all necessary steps to comply with the new "own funds" framework introduced by the Central Bank by applicable deadline. |
|
28 May 2024 |
New rules being implemented by the Securities & Exchange Commission in the United States (SEC) to shorten the standard settlement cycle for most broker-dealer transactions in U.S. securities from T+2 to T+1 take effect. Please see "Changes to securities settlement cycles" below for further details. |
Irish funds with exposure to US securities should start to engage with relevant service providers in order to assess the likely impact of the change in the US securities settlement cycle on their funds and identify any action which may need to be taken as a result. |
|
30 June 2024 |
All Irish fund management companies must have completed a review of their asset valuation frameworks in accordance with the Central Bank's Dear Chair by this date. |
Review of asset valuation framework should be carried out on by all Irish fund management companies to ensure that such frameworks are fit for purpose and adhere to all relevant legislative requirements and the Central Bank's supervisory expectations as outlined in its letter. |
|
30 June 2024 |
Fund management companies which (i) are obliged due to their size; or (ii) which have chosen to report on the principal adverse impacts of investment decisions on sustainability factors under Article 4 of the SFDR must publish a full PAI statement ( which for the first time must include historical comparisons against last year's PAI report) on their website on or before this date. |
In-scope fund management companies must prepare and publish the relevant PAI statement on their website by the applicable deadline. |
|
Quarter 2/Quarter 3 2024 |
As part of the broader AIFMD/UCITS reform, ESMA consultation paper containing draft regulatory technical standards on open-ended loan-originating AIFs is expected to be published. |
Those fund management companies currently or planning to operate a loan-originating strategy may want to keep a watching brief on these developments and respond to the consultation paper, if desired. |
|
Quarter 2/Quarter 3 2024 |
As part of the broader AIFMD/UCITS reform, ESMA consultation papers on (i) the selection and calibration of liquidity management tools and (ii) regulatory technical standards on the characteristics of liquidity management tools under both the UCITS and AIFMD frameworks are expected to be published. |
Fund management companies should review the consultation papers to assess any potential implications on existing liquidity management arrangements if rules proposed by ESMA are implemented and, if desired, respond to the relevant consultation paper. |
|
14 September 2024 |
New rules introduced by the SEC applicable to U.S private fund advisors begin to apply. |
Where relevant, investment managers falling within the scope of the new SEC rules which are appointed to Irish funds should assess any potential implications of these rules for such funds. |
To read the full briefing click here.
Footnotes:
1. References to "management companies" or "fund management companies" in this briefing include Irish UCITS management companies, AIFMs, self-managed UCITS funds and internally managed AIF funds unless otherwise indicated.
2.This briefing does not include filing requirements in respect of any filing where the filing date is determined with reference to the relevant entity's annual accounting date (such as the filing of annual and semi-annual financial statements with the Central Bank) nor does it address any tax-related deadlines to which funds and fund management companies may be subject. Periodic reviews of matters such as the content of PRIIPS key investor documents or the risk management framework, business plan and policies and procedures of fund management companies as well as any other actions required to be taken under the Irish Funds Corporate Governance Code are also excluded from the remit of this briefing. In addition, it does not address other matters where a set date for compliance has not been applied, including for example (i) the obligation imposed on fund management companies which have chosen to implement a shareholder engagement policy under SRD II to provide shareholders with information on their website on how that policy has been implemented in the previous 12 months or (ii) the obligation imposed on Irish UCITS management companies (and Irish UCITS SMIC) by the Central Bank to carry out a viability and suitability assessment of each Irish-domiciled UCITS under management when assessing the investment manager's annual presentation. Irish domiciled managers of MMFs will also be required to report certain prescribed information to the Central Bank of Ireland in accordance with Article 37 of the MMFR on a periodic basis during the course of 2024.
3. In each case, the dates for filing of returns with the Central Bank are estimated only and may vary from firm to firm. Clients should therefore refer to the details made available on the Central Bank's portal for specific filing date imposed by the Central Bank for each return.
4. Commission Delegated Regulation (EU) 2023/2486, available here
5. Commission Delegated Regulation (EU) 2023/2485, available here
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.
