Irish UCITS reform streamlines requirements
07 October 2015 Dublin
Image: Shutterstock
The Central Bank of Ireland has simplified its requirements for UCITS funds.
The central bank published its updated requirements, which aim to consolidate all of the conditions imposed on UCITS, their management companies and depositories into a single document, on 5 October. They will come into effect on 1 November.
UCITS funds are ultimately governed by the EU but member states are allowed a degree of autonomy in their interpretation of the guidelines.
The reforms were welcomed by Irish Funds, the representative body for the cross-border investment funds industry in Ireland.
Pat Lardner, CEO at Irish Funds, said: “This is a positive development for the Irish funds industry, and the removal of the promoter approval will ensure the regulatory framework is accessible to the broadest range of managers/promoters.
Irish Funds highlighted a number of positives for its members within the new regulations, in particular the removal of an existing requirement for promoters of UCITS funds to be approved by the CBI.
This was seen as a deterrent to smaller managers and will make the jurisdiction more attractive and accessible to start-up fund managers.
Exposures created through the reinvestment of collateral must also be taken into account in the issuer concentration calculations.
In addition, the reformed framework removes the requirement for promoters of UCITS funds to be approved by the central bank and brings the approach for UCITS funds in line with that for alternative investment funds.
The central bank published its updated requirements, which aim to consolidate all of the conditions imposed on UCITS, their management companies and depositories into a single document, on 5 October. They will come into effect on 1 November.
UCITS funds are ultimately governed by the EU but member states are allowed a degree of autonomy in their interpretation of the guidelines.
The reforms were welcomed by Irish Funds, the representative body for the cross-border investment funds industry in Ireland.
Pat Lardner, CEO at Irish Funds, said: “This is a positive development for the Irish funds industry, and the removal of the promoter approval will ensure the regulatory framework is accessible to the broadest range of managers/promoters.
Irish Funds highlighted a number of positives for its members within the new regulations, in particular the removal of an existing requirement for promoters of UCITS funds to be approved by the CBI.
This was seen as a deterrent to smaller managers and will make the jurisdiction more attractive and accessible to start-up fund managers.
Exposures created through the reinvestment of collateral must also be taken into account in the issuer concentration calculations.
In addition, the reformed framework removes the requirement for promoters of UCITS funds to be approved by the central bank and brings the approach for UCITS funds in line with that for alternative investment funds.
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