Dechert LLP (JD Supra Ireland)

The Central Bank of Ireland (the “Central Bank”) has published two documents which are significant steps towards enhancing the private equity and private credit product offerings currently available in Ireland. These documents have been published in anticipation of the update to the Investment Limited Partnerships Act, which is currently making its way through the Irish parliamentary process.

For many in the Funds Industry, the issue on 20 October 2020 of the Central Bank of Ireland’s (the “Central Bank”) Industry Letter (the “Industry Letter”) relating to the Central Bank’s Thematic Review of Fund Management Companies’ Governance, Management and Effectiveness (the “Thematic Review”) was a “Day of Reckoning” in relation to the Central Bank’s review of the operational model for many...

On 28 September 2020, the Central Bank of Ireland (the “Central Bank”) sent a letter to the Irish funds industry outlining the timeframes for receipt of: (i) new fund applications; and (ii) post-authorisation amendments that have approval deadlines before Christmas or year-end (the “Year-End Letter”).

This OnPoint provides an overview of the long-awaited central register of beneficial ownership filing requirements for both ICAVs and Unit Trusts in Ireland together with an update on the specific issues related to maintenance of a beneficial ownership register for Unit Trusts.

ESMA published on 3 April 2020, its Final Report, ‘Guidelines on performance fees in UCITS and certain types of AIFs’ (the “Guidelines”). The Guidelines are the culmination of a consultation process started by ESMA in July 2019 (the “Consultation”) which sought stakeholder feedback on a range of issues relating to the use of performance fees by fund managers.

The European Shareholders' Rights Directive II (“SRD II”) has been transposed into Irish law with the publication of the European Union (Shareholders’ Rights) Regulations 2020 (“Regulations”). The Regulations aim to promote greater shareholder involvement in the corporate governance of public companies which have a registered office in the EU and are listed on EU regulated markets (“Investee...

The Central Bank of Ireland (“CBI”) has issued a markets update1 (the “Update”) confirming flexibility for filing dates relating to certain regulatory returns due from investment firms, fund service providers and investment funds over the COVID-19 period.

A recent Dechert OnPoint, No Reward for Good Behaviour: The Central Bank’s Approach to Enforcement, examined new guidance of the Central Bank of Ireland (Central Bank) regarding the enforcement process involving non-compliant firms. Returning to the theme of the OnPoint, this article reviews key features of the Central Bank’s recent announcements, to look forward to what may be expected for 2020.

On 14 November 2019, the Central Bank of Ireland (the “Central Bank”) launched its Administrative Sanctions Guidance (the “Guidance”), accompanied by a key-note speech by Derville Rowland, the Director General of Financial Conduct. The speech and the Guidance mark a continuation of the Central Bank’s demands for high standards, a trend prominent in recent industry guidance including the Industry...

In September 2019, the Central Bank of Ireland (the Central Bank) published CP130, a consultation paper on the proposed regulatory framework (the Framework) for the treatment, correction and redress of errors in investment funds (the Consultation). It is proposed that the Framework will apply to fund management companies acting for Irish authorised Undertakings for the Collective Investment in...

On 16 September 2019, the Central Bank of Ireland (the “Central Bank”) sent a letter to the Irish funds industry outlining the timeframes for receipt of (i) new fund applications and (ii) post-authorisation amendments that have approval deadlines before Christmas or year-end (the “Year-End Letter”).

ESMA published a consultation (the “Consultation”) on draft guidelines for UCITS performance fees (the “Draft Guidelines”) on the 16 July 2019. The objective of the Consultation is to obtain stakeholder feedback on the Guidelines in five principle areas, namely: 1. performance fee calculation methodologies; 2. consistency between performance fee calculation models and investment objectives,...

The Central Bank of Ireland (the “Central Bank”) on 18 July 2019 published a ‘Dear Chair’ letter to the industry (the “Industry Letter”) highlighting the key supervisory issues identified in a thematic review of Irish domiciled UCITS investment funds (“UCITS”) on the subject of closet indexing (the “Review”), and setting out certain actions to be taken to mitigate any concerns. While no...

On 7 August 2019, the Central Bank of Ireland (the “Central Bank”) issued an industry letter (the “Industry Letter”) regarding the importance of ongoing, effective liquidity management and ensuring compliance with relevant legislation and regulatory obligations for UCITS1 and AIFs.

On 23 July 2019, the Central Bank of Ireland (the “Central Bank”) revised its guidance on UCITS Financial Indices (“Guidance”), clarifying the circumstances where an index certification is now not required.

The Irish Government recently commissioned a report on gender balance in Irish businesses (Report)1, prepared by the review group Balance for Better Business2. The Report found that in a country where, in 2019, just one in nine chief executives (12%) of enterprises with at least 250 employees is a woman, the percentage of women on the boards of Irish-listed companies remains significantly lower...

On 20 June, 2019, Ireland’s government released its proposed Investment Limited Partnerships (Amendment) Bill 2019 (the “Bill”) that will update the Investment Limited Partnership (“ILP”) structure.

Bond Connect applications - The Central Bank of Ireland confirmed on 21 March 2019 that it would begin to accept applications from Irish authorized investment funds to participate in China Bond Connect ("Bond Connect"). The Central Bank’s confirmation follows a submission by Irish Funds on behalf of the funds industry in December 2018 ("the Submission")....

On 8 April 2019, the Central Bank of Ireland (the “CBI”) issued a Dear CEO Letter (the “Letter”) to the management of all regulated financial services firms (“Regulated Firms”) highlighting what it believes is a lack of general awareness of the scope of the Fitness and Probity (“F&P”) regime and, in particular, of the obligations of Regulated Firms under the regime.

On March 21, 2019, the Central Bank of Ireland (CBI) confirmed its approval of the use of Bond Connect for Irish-authorised UCITS and Alternative Investment Funds (AIFs). In addition, the CBI reiterated that Irish-authorised UCITS and AIFs acquiring Chinese bonds through Bond Connect must ensure that the relevant depository retains control over the bonds at all times, as well as conducting...

MoUs with the Financial Conduct Authority (FCA) - The Central Bank of Ireland has agreed a Memorandum of Understanding (MoU) on February 1, 2019 with the Financial Conduct Authority (FCA) of the United Kingdom (UK) on foot of an agreement reached by the European Securities and Markets Authority (ESMA). The MoU forms part of authorities’ preparations for a no-deal Brexit scenario. The MoUs are...

Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Bill 2019 - The Government of Ireland approved the general scheme of drafting of the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Bill 2019 (the “Bill”) on 3 January 2019.

Central Bank says Brexit contingency planning must continue - The Central Bank’s Director General for Financial Conduct, Derville Rowland spoke at the Irish Funds Annual UK Symposium on 15 November 2018, telling asset managers their contingency planning “must continue.”

Central Bank publishes the fifth edition of its investment firms Q&A - The Central Bank of Ireland published the fifth edition of its Investment Firms Questions and Answers (the “Q&A”) on October 8, 2018, containing an additional question ID 1039 which relates to the scope of the term “transferable securities” and addresses circumstances where securities have restricted transferability, for...

The Central Bank of Ireland (the “Central Bank”) has introduced welcome changes to the authorisation and post-authorisation of UCITS and Retail AIFs by applying a self-certification process to a number of actions and a new application form procedure for UCITS Mergers.

General data protection regulation – Irish funds working group updates - In July 2018, the Irish Funds General Data Protection Regulation ("GDPR") (Regulation (EU) 2016/679) working group (the "Working Group") issued an industry bulletin containing a data protection accountability checklist. The Working Group noted that GDPR’s new accountability principle requires data controllers to not only...

The Central Bank of Ireland (the “Central Bank”) recently issued an industry letter1 highlighting issues identified during its recent thematic review of the calculation and payment of performance fees by UCITS. The review was carried out in parallel to its consultation on potential amendments to the Central Bank UCITS Regulations (CP 119).

Central Bank publishes twenty-third edition of UCITS Q&A - The Central Bank published the 23rd Edition of the Central Bank UCITS Q&A on 5 July 2018. A new question, ID 1002, in relation to UCITS investing in non-UCITS investment funds and provisions to be included in constitutional documents in such circumstances has been answered.

The Companies Registration Office ("CRO") in Ireland, published form FS1 on 10 July 2018. This form should be used by certain investment companies when filing financial statements with the CRO.

Central Bank issues new edition of the AIFMD Q&A - The Central Bank published the 30th edition of the AIFMD Q&A. ID 1083 on 4 May 2018, which relates to loan originating Qualifying Investor AIF and obligations to report pursuant to the Central Credit Act 2013.