The Central Bank has released the third edition of its UCITS Q&A which provides clarity on the following:

Master-Feeder UCITS

The Irish UCITS Regulations prohibit a master UCITS from charging subscription or redemption fees for the investment of a feeder UCITS into its units or the divestment thereof. The Central Bank confirms in the third edition of its UCITS Q&A that this does not prohibit the application of an anti-dilution levy by a master UCITS to subscriptions and redemptions by a feeder UCITS provided that:

“(i) the prospectus includes complete and unambiguous disclosure on the purpose and nature of the charge which may arise; and

(ii) any such anti-dilution levy is applied at the master UCITS level only.”

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

Contributed by Lorena Dunne