On 29 March 2018, the Central Bank of Ireland (the "Central Bank") published a Consultation Paper ("CP119")1 proposing a consolidation of and new set of amendments to the Central Bank UCITS Regulations2, the statutory instrument that forms the basis for the Irish regulatory framework for UCITS.
The Central Bank UCITS Regulations came into effect on 1 November 2015, replacing the long established UCITS Notices. Subsequently, First Amending Central Bank UCITS Regulations3 and Second Amending Central Bank UCITS Regulations4 were issued, each addressing discrete issues. The Central Bank UCITS Regulations (collectively) complement the UCITS Regulations5, the main Irish regulations that implement the UCITS Directive. These regulations are supplemented by supporting regulatory guidance and Q&As published by the Central Bank on specific UCITS issues to make up the complete UCITS regulatory framework.
The following are some of the notable amendments proposed:
Share class hedging - amendments and new provisions to reflect the provisions of ESMA's Opinion on UCITS Share Class Hedging6 (Regulation 27 and Schedules 7 & 8). Performance fees - new obligations relating to UCITS which charge performance fees - previously contained in guidance, with the exception of a restriction on paying a performance fee more frequently than on an annual basis. Existing UCITS that pay performance fees more frequently than annually will have a (as yet unspecified) transition period to adjust their model (Regulation 41 and 75). MMFR - amendments to reflect the provisions of the Money Market Fund Regulation7. CP86 - codifying the CP86 requirements to establish and monitor daily an email address for regulatory correspondence (Regulation 48) and to keep records that are immediately retrievable in or from Ireland (Regulation 129). Management company/depositary second set of semi-annual accounts - requiring a full twelve month set of unaudited financials for management companies and depositaries, instead of a second set of half-yearly accounts and requiring that these full year unaudited financials are submitted within one month of the relevant period (previously two months) (Regulation 99 and 118). UCITS V depositary requirements - adjustments to depositary obligations and depositary agreement requirements in light of UCITS V, including removal of the obligation to review each UCITS' valuation methodologies (Part 12). Temporary suspension notifications - new requirements to (i)...