Originally published 11 October, 2010
Central Bank of Ireland replaces the Financial Regulator
Certain provisions of the Central Bank Reform Act 2010, reforming the Irish financial services regulatory structure, came into effect on 1 October, 2010 following the signing of a commencement order on 28 September, 2010. As a result, the office of the Financial Regulator has been dissolved and the Central Bank of Ireland is now the single regulatory body responsible for the authorisation and supervision of Irish regulated investment funds.
QIF minimum subscription and investor criteria changes expected shortly
The minimum investment amount and investor eligibility criteria for Irish qualifying investor funds (QIFs) are set to change shortly. The minimum subscription will be €100,000 – reduced from €250,000 - and investors will need to be either MiFID professional investors or certify that they have the knowledge and experience necessary to understand the investment. Certification can also be made by a connected party of the fund, subject to certain conditions. These changes, which are expected to be confirmed shortly, will open up QIFs to a much broader investor base.
Existing QIFs will need to revise their prospectus and subscription agreement in order to avail of the new criteria.
Fund director corporate governance code – update
As advised in our e-briefing of 18 June, 2010 a new corporate governance code for investment fund directors is to be formulated. Discussions between the Irish Funds Industry Association and the Central Bank of Ireland have been ongoing of late with the code expected to be agreed shortly. However, in the interim, the Central Bank of Ireland has taken the additional step of indicating a limit on the number of directorships that it considers appropriate – identifying a figure of 30. Further, it has indicated that it expects certain boards to require restructuring to take account of the code once implemented. In effect, the Central Bank of Ireland expects persons with a number of directorships above the determined limit to resign from positions in order to fall into line with the code. This will also necessitate the appointment of replacement directors in some cases.
UCITS IV - management company requirements for self-managed investment companies
The UCITS IV Management Company Directive (2010/43/EU) sets out requirements regarding matters including:
organisational and administrative requirements (such as compliance...