Master / Feeder UCITS Schemes

Author:Mr Andrew Bates, Brian Kelliher, Karen Jennings, Donnacha O'Conner, Brian Higgins, Jennifer Fox and Derbhil O'Riordan
Profession:Dillon Eustace
 
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SCOPE AND APPROVAL

Scope Page Approval by the Central Bank COMMON PROVISION FOR FEEDER AND MASTER

Agreement and Internal Conduct of Business Rules between the Master and Feeder Access to Information Basis of Investment by the Feeder Standard Dealing Arrangement Events affecting Dealing Arrangements Standard Arrangements for the Audit Report Changes to Standing Arrangements Choice of the Applicable Law LIQUIDATION, MERGER OR DIVISION OF THE MASTER

Procedures in the Event of Liquidation of Master Procedures in the event of a Merger or a Division of Master DEPOSITARIES AND AUDITORS

Content of the Information-Sharing Agreement between Depositories Reporting of irregularities by the depository of the Master Information-Sharing Agreement between Auditors Choice of the Applicable Law ADDITIONAL INFORMATION TO BE INCLUDED IN THE PROSPECTUS OF AN IRISH AUTHORISED FEEDER

ADDITIONAL INFORMATION TO BE INCLUDED IN THE ANNUAL AND HALF YEARLY ACCOUNTS OF AN IRISH AUTHORISED FEEDER

DOCUMENTS TO BE MADE AVAILABLE TO INVESORS OF AN IRISH AUTHORISED FEEDER

OTHER RELEVANT PROVISIONS

OBLIGATION ON FEEDER AUTHORISED BY THE CENTRAL BANK TO MONITOR ACTIVITY OF MASTER

INFORMATION TO BE GIVEN TO CENTRAL BANK BY IRISH AUTHORISED MASTER

SUBSCRIPTION AND REDEMPTION FEES AT MASTER LEVEL

This Memorandum sets out the provisions in relation to Master-Feeder Fund structures stemming from the European Commission Directive 2009/65/EC, commonly referred to as the UCITS IV Directive, (the "Directive") and implementing Directive 2010/42/EU (the "Implementing Directive") which have been implemented into Irish law by the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (the "UCITS Regulations").

SCOPE AND APPROVAL

Scope

Regulations 78-87 of the UCITS Regulations adopt the provisions of Articles 58-67 of the UCITS Directive relating to master feeder structures. They provide that a feeder UCITS is a UCITS or a sub-fund of a UCITS (the "Feeder"), which has been approved to invest at least 85% of its assets in units of another UCITS or sub-fund thereof (the "Master"). A Feeder may hold up to 15 % of its assets in one or more of the following, namely, (i) ancillary liquid assets (ii) financial derivative instruments and (iii) movable and immovable property which is essential for the direct pursuit of the business1.

In calculating its global exposures related to financial derivative instruments, the Feeder must calculate its global exposure by combining its own direct exposure to financial derivative instruments with either:

The Master's actual exposure to...

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