Central Bank UCITS Amendment Regulations published

On 8 June 2016, the Central Bank (Supervision and Enforcement) Act, 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferrable Securities) (Amendment) Regulations 2016, (the “Regulations”) were signed. The Regulations amend the Central Bank UCITS Regulations 2015 (the Principal Regulations) and the more substantive amendments include: 

Remuneration policies: The insertion of new Regulation 95(a) such that a management company must ensure that its remuneration policies and practices as required by Regulation 24A of the Principal Regulations are consistent with the ESMA Guidelines on sound remuneration policies under the UCITS Directive and AIFMD.

Organisational effectiveness: These amendments to the Principal Regulations confirm that internally managed investment companies must establish an organisational effectiveness role and comply with Regulation 100 (1)-(7) of the Principal Regulations.

Regulation 100 (7) requires a management company to ensure that an organisational effectiveness role is performed by an independent Chairman or independent board member. This role may not be performed by an individual with responsibility for any of the six managerial functions.

The transitional period to comply with the organisational effectiveness requirement has also been extended to 30 June 2017.

Central Bank publishes Guidelines on IMR Online Reporting for FSPs

The Central Bank has published Guidelines, dated June 2016, on IMR Reporting for Funds Service Providers. The guidance details how to report breaches and other reportable matters through the Online Reporting System and can be viewed here.

Markets Update Issue 4 published

On 4 July 2016, the Central Bank published the fourth edition of its Markets Update, which includes:

• The Central Bank’s revised Market Abuse Rules and associated Guidance
• Feedback Statement on CP100: Consultation of Risk Assessment and Capital Planning for Fund Administrators
• Feedback Statement on CP101: Consultation on a Capital Requirement Framework for Market Operators
• ESMA Updates
• IOSCO Updates

Results of thematic review on investment firms’ client reporting

On 7 July 2016, the Central Bank published the results of its thematic review of the quality of investment firms’ client reporting. The findings indicate that investment firms met the client reporting requirements with many going beyond the minimum regulatory requirements in order to meet the service expectations of their clients. A number of good reporting practices were identified and communicated to the industry for future adoption in a Dear CEO Letter.

Contributed by Audrey Giles

  Investmentfirms include MiFID investment firms, MiFID branches passporting into Ireland,and UCITS Managers / AIFMD firms providing MiFID equivalent activity.