General data protection regulation – Irish funds working group updates   

In July 2018, the Irish Funds General Data Protection Regulation ("GDPR") (Regulation (EU) 2016/679) working group (the "Working Group") issued an industry bulletin containing a data protection accountability checklist. The Working Group noted that GDPR’s new accountability principle requires data controllers to not only comply with the fundamental processing requirements of lawfulness, fairness and transparency but also to demonstrate such compliance. 

In August 2018, the Working Group published its sixth GDPR bulletin. The bulletin considers how personal data breaches should be handled, as and when they arise and whether notification to the data protection authority is required.

A copy of the data protection accountability checklist and the personal data breaches and notification to data protection authorities bulletin is available on request from your Dechert contact.

Central Bank review of UCITS performance fees – new guidance

The Central Bank of Ireland (the "Central Bank") published the outcome of an inspection into UCITS performance fees on 4 September, 2018. The purpose of the review is to establish whether the procedures used to calculate and pay performance fees in UCITS ensure that investors’ interests are protected at all times. The review also examined the methodologies used to calculate performance fees to ensure they are in line with the Central Bank’s UCITS Performance Fees Guidance (the "Guidance"). 

All fund management companies whose UCITS charge performance fees are required to confirm to the Central Bank that they have carried out a review of the existing methodologies in order to satisfy themselves that performance fees charged comply with the Guidance. The Central Bank will also commence supervisory engagement with the individual UCITS that were the subject of the review.

Read: The thematic review of UCITS performance fees

Update on central register of beneficial owners  

Article 30 of the 4th EU Anti-Money Laundering Directive ("4AMLD") requires all EU Member States to put into national law provisions around beneficial ownership information for corporate and legal entities. As of 15 November 2016 corporate and legal entities must hold adequate, accurate and current information on their beneficial owner(s) in their own beneficial ownership register.

The Department of Finance in Ireland has recently advised that the drafting of legislation to establish a central register of beneficial ownership is at an advanced stage and is expected to be concluded soon. It is intended that these transposing measures will be in place before year end.

Read: The companies registration office 2018 guidance on beneficial ownership

Central Bank of Ireland welcomes publication of Brexit Opinions

In a statement issued on 31 July 2018, the Central Bank of Ireland (the "Central Bank") has welcomed the publication by the European Supervisory Authorities ("ESAs") of Opinions on the impact of the UK withdrawing from the EU.

Derville Rowland, Director General Financial Conduct at the Central Bank, said: “The ESAs’ Opinions are a timely reminder to financial institutions and in particular to banks, insurers, brokers and investment firms, to ensure they have put appropriate plans in place for Brexit. We expect that firms consider the implications of Brexit and ensure they have robust contingency measures to minimise the impact on their customers, investors and markets.’’ 

The Central Bank is active at ESA level and in EU Brexit forums across the full range of issues within its mandate. In relation to consumer protection, the Central Bank is seeking to ensure consistent and predictable consumer protections, and will continue to work with financial institutions and at EU level to drive firms toward preparedness so that consumers are protected regardless of the outcome of the UK / EU negotiations. The ESAs’ Opinions reflect the views expressed consistently by the Central Bank in relation to the steps that financial institutions need to take to prepare for the UK’s withdrawal from the EU.

Read: The Central Bank of Ireland statement welcoming the European supervisory authorities' publication of Brexit opinions

Central Bank deadlines for pre-Christmas/year-end applications

The Central Bank of Ireland (the "Central Bank") has issued correspondence that outlines the timeframes for receipt of fund / sub-fund applications (including self-managed / internally managed investment company / ICAV applications) and post-authorisation amendments that have pre-Christmas or pre-year end authorisation/approval/noting deadlines.

In relation to all QIAIF filings to be submitted during the Christmas period, the Central Bank has noted that the Authorisations team in the Regulatory Transactions Division ("RTD") are requesting a list of proposed QIAIFs (including an estimated number of associated IQs) on a weekly basis from mid-November. 

A copy of the correspondence is available on request from your Dechert contact.