Central Bank Signs Off on CP86 with a Location Rule Compromise

The Central Bank published its Third Consultation and Feedback Statement on CP86 on 19 December 2016. While the multi-location rule was abandoned, the final location rule which aimed to strike a balance between effective supervision (in Ireland) and availability of expertise (outside of Ireland), shifted the balance from promoter control to independent control. Dechert’s overview of this is available.

Alterations to the Chinese Stock-Connect Infrastructure

The Central Bank has updated their positions on the regulatory considerations around Irish authorised AIF seeking to acquire Chinese shares through the Shanghai-Hong Kong Stock Connect and Shenzhen Hong Kong Stock Connect.

The update can read in full

Central Bank Releases 15th UCITS Q&A

The Central Bank has released its latest update to the UCITS Q&A. The Q&A contains updates mainly concerning:

• The transitional arrangements which apply to UCITS management company or UCITS self-managed investment company in relation to managerial functions, new supervision requirement and the retrievability of records; and
• The Central Bank does not permit sub-funds within umbrella funds, including ICAVs to have separate auditors.

Revised AIF Q&As Issued

The Central Bank released its 22nd and 23rd editions of the AIFMD Q&A:

• clarifying that with an existing QIF, when converting an Irish subsidiary to a private company limited by shares, new constitutional documents should reflect the QIF investment objective and policy; and
• new information regarding loan originating Qualifying Investor AIFs such as loan originating Qualifying Investor AIFs must limit their activities to lending and related activities.

Thematic Review of Outsourcing Arrangements

The IFFS conducted a thematic review of Outsourcing Arrangements for Investment Firms, Fund Managers and Fund Service Providers to analyse and test the monitoring and reporting controls employed by firms to mitigate and manage outsourcing risks. The Central Bank recommended questions that the Board of Directors and senior management of firms should consider.

These questions can be read in full

Latest Fund Statistics

The Central Bank of Ireland has issued the latest statistics available regarding Irish funds. This includes fund data as well as details relating to new fund launches.