Consultations of interest

On 2 June 2016, the Central Bank published twoconsultations:

• CP86:  Fund Management Company Effectiveness – View our detailed article here
• CP105: Consultation on a second set of amendments to the Central Bank UCITS Regulations

The Central Bank UCITS Regulations 2015require amendment as a result of the implementation of UCITS V, and sometechnical amendments have also been proposed to correct typographical errorsand inconsistencies. The Central Bank is seeking feedback on the proposals by25 August 2016. 

The Central Bank also published a feedbackstatement to CP99:  Consultation on Amendments to the AIF Rulebook.  This summarises the responses received together with the Central Bank’scomments and decisions.

UCITS Q&A

On the 2 June 2016, the Central Bank publisheda thirteenth edition of its UCITS Q&A. The new questions added are:

• ID 1063 UCITS Management Company – Organisational Effectiveness: clarifying that except in rare cases where unique and unusual circumstances apply, an organisational effectiveness review should, at a minimum, be conducted on an annual basis.
• ID 1064 Share Class Hedging: clarifying that over-hedged positions should be included in calculations when leverage is calculated as the sum of the notionals (where a UCITS uses a VaR approach to calculate global exposure); in calculations of counterparty risk; and, in calculations of concentration exposures.
• ID 1065 Companies Act 2014: restating that the CBI does not require UCITS management companies, alternative investment fund managers, AIF management companies, fund administrators, depositaries and investment firms to convert to Designated Activity Companies (DACS) under the Companies Act 2014.
• ID 1066 Companies Act 2014: confirming that the Central Bank does not require UCITS management companies, alternative investment fund managers, AIF management companies, fund administrators, depositaries and investment firms which are taking action to re-register as a company type recognised under the Companies Act 2014 to submit amendments to their constitution. However, where companies re-register as DACs a copy of the new certificate of incorporation should be submitted.

An existing question – ID 1013 – has beenamended.

AIFMD Q&A

On 2 June 2016, the Central Bank published itsnineteenth edition of the AIFMD Q&A. The new questions added are:

• ID 1104 Fund Management Company – Organisational Effectiveness: clarifying that except in rare cases where unique and unusual circumstances apply, an organisational effectiveness review should, at a minimum, be conducted on an annual basis.
• ID 1105 Rules – Significant Influence in the Context of Certain Types of AIFs: clarifying that if a RIAIF or QIAIF invests a portion of its assets in a venture capital, development capital or private equity strategy, the significant influence rule does not apply to that proportion of assets which is invested in venture capital, development capital or private equity.
• ID 1106-ID 1107 Companies Act 2014:
• ID1106: restating that the CBI does not require UCITS management companies, alternative investment fund managers, AIF management companies, fund administrators, depositaries and investment firms to convert to Designated Activity Companies (‘DACS’) under the Companies Act 2014.
• ID1107: confirming that the Central Bank does not require UCITS management companies, alternative investment fund managers, AIF management companies, fund administrators, depositaries and investment firms which are taking action to re-register as a company type recognised under the Companies Act 2014 to submit amendments to their constitution. However, where companies re-register as DACs a copy of the new certificate of incorporation should be submitted.

Investment Funds Q1 2016 statisticalrelease

On 2 June 2016, the Central Bank published itsInvestment Funds Q1 2016 statistical release. It reported that the net assetvalue of investment funds resident in Ireland (IFs) decreased by 2.5 percent(€35 billion) over the first quarter of 2016, to €1,397 billion from €1,432billion in Q4 2015. The Central Bank further reported that equity fundsexperienced outflows for the first time since Q2 2013, with €1.5 billion netredemptions. The total assets held by IFs decreased in value by €29billion.

Money Market Funds Q1 2016 statisticalrelease

On 2 June 2016, the Central Bank published itsMoney Market Funds, 2016 Q1 statistical release. It reported that the net assetvalue of money market funds (MMFs) resident in Ireland at end-December 2015 was€434 billion, a decrease of 7 per cent since September 2015, and that thisdecrease was largely attributable to the impact of euro appreciation on USdollar and sterling denominated funds.

Contributed by Audrey Giles