Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2019

JurisdictionIreland
Year2019
CitationIR SI 230/2019

Notice of the making of this Statutory Instrument was published in

“Iris Oifigiúil” of 31th May, 2019.

CONTENTS

Regulation

PART 1

PRELIMINARY AND GENERAL

1. Citation

2. Interpretation

PART 2

RESTRICTIONS ON UCITS

Chapter 1

General

3. General restrictions

4. Eligible assets: transferable securities

5. Closed-ended funds

6. Money-market instruments

7. Deposits and ancillary liquidity with credit institutions

8. Financial derivative instruments

9. Financial index

10. Investment through subsidiaries

Chapter 2

Investment Restrictions

11. Investment funds

12. Recently issued transferable securities

13. Financial derivative instruments

14. Borrowings by a UCITS

Chapter 3

Financial Derivative Instruments

15. Cover requirements

16. Risk management process and reporting

17. Calculation of global exposure

18. Global exposure: commitment approach (structured UCITS)

19. Global exposure: Value at Risk approach

20. Back-testing

21. Stress-testing

22. Value at Risk approach: additional safeguards

Chapter 4

Efficient Portfolio Management

23. Portfolio management techniques

24. Collateral

25. Repurchase and reverse repurchase agreements

Chapter 5

Share Classes

26. Creation of share classes in a UCITS

Chapter 6

Constitutional Documents

27. Fees

28. Investment

29. Umbrella UCITS

30. Distributions out of, and charging of fees and expenses to, capital

31. Dealing in specie

32. Replacement of depositary

Chapter 7

Dealing

33. Subscriptions and redemptions

Chapter 8

Valuation

34. Valuation policy

35. Dealing

36. Methods of valuation

37. Responsibility for valuation policy

38. Anti-dilution levy

Chapter 9

Remuneration

39. Restriction on payment of certain fees

40. Performance fees

41. Calculation of annual management fee of a structured UCITS

Chapter 10

Transactions involving Connected Persons

42. Interpretation: Chapter 10 of Part 2

43. Restrictions on transactions with connected persons

Chapter 11

Directed Brokerage Services

44. Rebates of commission

45. Costs, fees and expenses of directed brokerage services

PART 3

SUPERVISORY REQUIREMENTS

46. General conditions

47. Relationship with the Bank

48. Charges for redemption or repurchase of units

49. Replacement of depositary

50. Replacement of management company or third party

51. Monthly returns

52. Quarterly returns

PART 4

PROSPECTUS REQUIREMENTS

53. General requirements

54. Advertising

55. Prospectus: general

56. Prospectus: investment policy

57. Financial index

58. Structured UCITS

59. Fund of funds

60. Index-tracking funds

61. Efficient portfolio management

62. Dealing

63. Redemption in specie

64. Remuneration and costs arising

65. Umbrella UCITS

66. Authorisation status

67. Risk disclosures

68. UCITS that use financial derivative instruments

69. Cash and money-market funds

70. Distributions out of capital

71. Conflicts of interest

72. Directed brokerage services and similar arrangements

73. Share classes

74. Performance fees

PART 5

KEY INVESTOR INFORMATION DOCUMENT

75. General

76. Investment objective and policy

77. Risk and reward profile

78. Filing requirements

PART 6

GENERAL OPERATIONAL REQUIREMENTS

79. Regulated markets

80. Directed brokerage services or similar arrangements

PART 7

ANNUAL AND HALF-YEARLY REPORTS OF A UCITS

81. Publication of annual and half-yearly reports

82. Additional information to be included in the annual report

83. Additional information to be included in the half-yearly report

PART 8

REQUIREMENTS IN RESPECT OF SPECIFIC TYPES OF UCITS

84. Interpretation: Part 8

85. Exchange-traded UCITS

86. Actively managed UCITS ETFs

87. Treatment of secondary market investors of a UCITS ETF

88. Money-Market UCITS

89. Short-Term Money-Market Funds

90. Money-Market Funds

91. Short-Term Money-Market Funds: valuation on the basis of amortised cost

92. European Central Bank reporting requirements

PART 9

GUARANTEED UCITS

93. General

94. Legal agreement

95. Disclosure

PART 10

CROSS-BORDER NOTIFICATION OF UCITS

96. Outward marketing: UCITS authorised under the UCITS Regulations

97. Inward marketing: UCITS authorised in another Member State

PART 11

MANAGEMENT COMPANIES

Chapter 1

General Requirements

98. Operating conditions

99. Remuneration policies

100. Capital

101. Organisational requirements: general

102. Organisational requirements: delegation

103. Code of conduct in relation to collective portfolio management

104. Directors

105. Record-keeping

106. Management resources

107. Relationship with the Bank

108. Financial control and management information

109. Internally-Managed investment companies

Chapter 2

Management Company Passport

110. Notifications

111. Assessment: general requirements

112. Assessment: governance issues

113. Assessment: administrator issues

114. Assessment: depositary issues

PART 12

UCITS DEPOSITARIES

115. Organisational requirements

116. Governance

117. Operating conditions

118. Depositary obligations and restrictions

119. Depositary subsidiaries

120. Operating conditions

121. Depositary agreement

122. Permitted markets

123. Valuation of a UCITS

124. Dealing in specie

125. Relationship with the Bank

PART 13

MISCELLANEOUS PROVISIONS

126. Reporting requirements

127. Service of notice or other document by the Bank

128. Records and Compliance

129. Transitional arrangements

130. Disapplication of certain provisions

PART 14

REVOCATIONS AND SAVER

131. Revocations

132. Saver

SCHEDULE 1

Regulatory Criteria

SCHEDULE 2

Netting and Hedging

SCHEDULE 3

Conditions for Collateral Received by a UCITS

SCHEDULE 4

Calculation of Global Exposure using the Value at Risk Approach

SCHEDULE 5

Methods of Valuation

SCHEDULE 6

Advertising Standards for Certain UCITS

SCHEDULE 7

Additional information to be included in the annual report

SCHEDULE 8

Additional information to be included in the half-yearly report

SCHEDULE 9

Minimum Capital Requirement Report

SCHEDULE 10

Managerial functions of the management company

SCHEDULE 11

Records of a Management company

In exercise of the powers conferred on the Central Bank of Ireland (the “Bank”) by section 48 of the Central Bank (Supervision and Enforcement) Act 2013 (No. 26 of 2013) (the “Act”), the Bank, having consulted with the Minister for Finance and the Minister for Business, Enterprise and Innovation in accordance with section 49(1) of the Act hereby makes the following regulations:

PART 1

PRELIMINARY AND GENERAL

Citation

1. (1) These Regulations may be cited as the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations 2019.

Interpretation

2. (1) In these Regulations, unless the context otherwise requires-

“actively managed UCITS ETF” means a UCITS ETF, in respect of which the responsible person has discretion over the composition of its portfolio and which, subject to the stated investment objectives and policies, may have the objective of outperforming an index;

“alternative investment fund” has the meaning given to the term in Regulation 5(1) of the European Union (Alternative Investment Fund Managers) Regulations 2013 ( S.I. No. 257 of 2013 );

“AIF” means an alternative investment fund;

“annual tracking difference” means the difference between the annual return of an index-tracking UCITS and the annual return of the tracked index;

“anti-dilution levy” means a charge imposed on subscriptions or on redemptions as relevant, to offset the dealing costs of buying or selling assets of the UCITS and to preserve the net asset value per share of the UCITS, as a result of net subscriptions or of net redemptions on a dealing day;

“associated company” has the meaning given to the term “associated undertaking” in schedule 4, Part III Accounting Principles and Valuation Rules, paragraph 21 of the Companies Act 2014 (No. 38 of 2014);

“central counterparty” means a person specified in Regulation 8(5);

“Commission Regulation (EU) No 583/2010” means Commission Regulation (EU) No 583/2010 of 1 July 2010 implementing Directive 2009/65/EC of the European Parliament and of the Council as regards key investor information and conditions to be met when providing key investor information or the prospectus in a durable medium other than paper or by means of a website.

“constitutional document” means-

(a) in the case of a unit trust, the trust deed,

(b) in the case of an investment company, the memorandum and articles of association,

(c) in the case of a common contractual fund, the deed of constitution, and

(d) in the case of an Irish Collective Asset-management Vehicle, the instrument of incorporation;

“directed brokerage services” means brokerage services in relation to a UCITS pursuant to which a commission or similar payment is paid to or secured by the entity which issues instructions;

“EMIR” means Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories;

“ESMA” means the European Securities and Markets Authority;

“FDI” means a financial derivative instrument;

“group undertaking” means an undertaking that is included in the same group for the purposes of preparing consolidated accounts...

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