Public statement relating to Enforcement Action between the Central Bank of Ireland and GlobalReach Multi-Strategy ICAV

• Date: 30 November 2023

1

ENFORCEMENT ACTION

CENTRAL BANK OF IRELAND

and

GLOBALREACH MULTI-STRATEGY ICAV

GlobalReach Multi-Strategy ICAV fined €192,500 and reprimanded by the Central Bank of Ireland

for breach of its reporting obligation under EMIR.

On 28 November 2023, the Central Bank of Ireland (the Central Bank) reprimanded and fined the

investment fund, GlobalReach Multi-Strategy ICAV (the ICAV), €192,500 pursuant to the European

Union (European Markets Infrastructure) Regulations 2014, as amended (the EMIR Regulations), for

breach of its reporting obligation under Article 9(1) of the European Markets Infrastructure Regulation

(EMIR) which requires details of any derivative contracts1 to be reported to a registered trade

repository2 no later than the working day following the conclusion of the contract.

The ICAV has admitted that it failed to report 200,640 derivative trades entered into between January

2018 and May 2020 by one of its sub-funds (the Sub-Fund) to a trade repository.

The Central Bank has determined the appropriate fine to be €275,000, which was reduced by 30% to

€192,500 as allowed for by the settlement discount scheme provided for in the EMIR Regulations

Settlement Scheme. This is the first monetary penalty imposed on an investment fund by the Central

Bank to date.

Seána Cunningham, the Central Bank’s Director of Enforcement and Anti-Money Laundering, has

commented as follows:

“This case highlights the importance of timely and accurate data reporting. The reporting obligations

under EMIR and other sectoral legislation increase transparency and enable the Central Bank to obtain

1 A derivati ve is a financial contract (such as a future, option or warrant) whose value derives from, and is

dependent on, the value of an un derlying asset (such as a commodity, currency or security). Derivatives can

trade on an exchange or over the counter (OTC), and the objective of the reporting obligation set out in EMIR is

to improve the transparency of, and reduce the risks associated with, OTC derivatives markets.

2 Trade repositories are commercial firms that centrally collect and maintain the records of derivative

contracts and/or types of securities financing transactions (SFTs). SFTs allow in vestors and firms to use assets,

such as the shares or bonds they own, to secure funding for their own activities. The regi stration of a trade

repository with ESMA means that it can be used by counterparties to a derivative transaction an d/or SFT to

fulfil their trade reporting obligations under EMIR and/or the Securities Financing Tran sactions Regulation

respectively.