The Central Bank has released the second edition of its UCITS Q&A which provides the following clarity.

Permitted Markets for UCITS

The Q&A confirms the Central Bank’s intention to withdraw Guidance Note 1/96 on Permitted Markets for Retail Collective Investment Schemes. The Central Bank will not undertake to review any submissions in relation to proposed markets, pending the issue of a final UCITS Rulebook. The Central Bank advises that in the interim a UCITS wishing to refer to a regulated market in its prospectus should carry out the appropriate assessments to ensure compliance with statutory requirements. Regard should continue to be had to the standards referred to in Guidance Note 1/96. The Central Bank highlights that it may seek sight of such assessments at any time and UCITS should be in a position to justify to the Central Bank their inclusion of any proposed market in a prospectus.

100% investment – additional issuer

Furthermore, the Q&A confirms that the Central Bank will not object if UCITS and AIFs provide for investment of up to 100% of their net assets in securities and instruments issued or guaranteed by the government of the People’s Republic of China. This position has been reflected in the Central Bank’s relevant UCITS and AIF application forms.

To view the Q&A in full, please click here.

Contributed by Lorena Dunne