IRELAND: CBI Publishes Ninth Edition of UCITS Q&A

Monday November 9 2015

On 4 November 2015, the Central Bank published the Ninth Edition of the UCITS Q&A. New Questions ID 1049 – ID 1057 have been added. ID 1043 has been amended (prospectus disclosure long/short positions).

The following questions have been added:

ID 1049

Q. Should Regulation 9(12) of the Central Bank UCITS Regulations provide that subcategories of the same commodity are highly correlated if 25 per cent of correlation observations are above 0.8?

ID 1050

Q. Regulation 9(4) of the Central Bank UCITS Regulations provides that a ‘responsible person shall not invest assets of the UCITS in a financial index where a single component’s impact on the overall return of that index exceeds the diversification requirements set out in Regulation 71 of the UCITS Regulations’. The Central Bank had, in Guidance Note 2/07, stated that a UCITS proposing to use a financial index comprised of eligible assets with concentrated levels in excess of that permitted by the Regulations, may, applying a look through approach, consolidate the constituents of the index with the assets held directly by the UCITS to ensure it meets the risk-spreading requirements of the Regulations. Is the Central Bank continuing to adopt this position in light of Regulation 9(4)?

ID 1047

Q. Where a responsible person has received a waiver from the UCITS Notices, can it submit an application to receive a similar waiver from the Central Bank UCITS Regulations?

ID 1048

Q. When should revisions to a UCITS prospectus be made?

ID 1051

Q. When will a UCITS management company or a UCITS depositary which falls within Regulation 35(2)(c) of the UCITS Regulations have to produce the second set of halfyearly accounts required under Regulation 95(3)(a)(ii) and Regulation 113(3)(a)(ii) of the Central Bank UCITS Regulations, respectively?

ID 1052

Q. Regulation 124(3) of the Central Bank UCITS Regulations provides that a management company shall comply with Regulation 97(1)(c) by 30 June 2016. Is this a correct reference?

ID 1053

Q. What transitional arrangements apply in relation to the managerial functions listed in Schedule 10 of the Central Bank UCITS Regulations?

ID 1054

Q. Does the Central Bank require promoters of existing UCITS to maintain a minimum capital of €635,000?

ID 1055

Q. Regulation 36(1) of the Central Bank UCITS Regulations requires a responsible person to value assets in accordance with Schedule 5 of the Central Bank UCITS Regulations unless an alternative method of valuation has been agreed in advance with the Central Bank. Where an alternative method of valuation is provided for in the prospectus of a UCITS authorised before 1 November 2015 and where that prospectus has been noted by the Central Bank, can it be understood that such alternative method of valuation has been agreed in advance with the Central Bank?

ID 1056

Q. The UCITS Notices set out conditions that the Central Bank imposed on fund administrators but the Central Bank UCITS Regulations do not set out similar rules. What rules is the Central Bank imposing on fund administrators acting for UCITS?

ID 1057

Q. Can subscription and redemption monies of individual sub-funds, as fund assets, be held within a single account in the name of the umbrella UCITS?

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