From 1 November 2016, where a UCITS applies a redemption gate, all redemption requests must be dealt with on a pro-rata basis. Therefore unsatisfied redemption requests no longer receive priority to subsequent requests. This provision was introduced by the Central Bank UCITS Regulations 2015 (the Regulations), and was subject to a transitional period. With this period drawing to an end, UCITS should consider whether their constitutive documents require amendment to ensure compliance with the Regulations. If an amendment to the constitutive document of a UCITS is necessary then the prospectus of the UCITS should be updated to reflect the amendment.

Contributed by Niall Crowley