Asset Management

Asset Management update - June 2017

Central Bank update on fund administrator outsourcing

On 28 June 2017, the Central Bank updated its guidance titled “Fund Administrator Outsourcing” to reflect the best practices outlined in the Central Bank’s recent letter to the industry following a themed review of the outsourcing of fund administration activities. Find out more.


Central Bank publishes 18th edition of the UCITS Q&A and revised guidance in relation to share classes

ESMA issued its opinion “Share Classes of UCITS” in January 2017. For the most part, rules which the Central Bank applies to UCITS with regard to share classes are consistent with the opinion provided by ESMA. In order to fully apply the principles, on 28 June 2017 the Central Bank amended the guidance entitled "UCITS and AIF Share Classes".

In addition, and in order to provide clarity for stakeholders, the Central Bank has published some additional Q&As in the eighteenth edition of the UCITS Q&A document. These are new Questions ID 1077 and ID 1078.


ESA risk factors guidelines on anti-money laundering and countering the financing of terrorism

On 26 June 2017 the Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) yesterday published its final Guidelines on anti-money laundering and countering the financing of terrorism (AML/CFT). The Guidelines promote a common understanding of the risk-based approach to AML/CFT and set out how it should be applied. The Guidelines provide credit and financial institutions with the tools they need to make informed, risk-based decisions on the effective management of individual business relationships and occasional transactions for AML/CFT purposes. The Guidelines will apply by 26 June 2018.


The Companies (Accounting) Act 2017

The Companies (Accounting) Act 2017 (the “Act”) became active on 9 June 2017. The Act impacts funds established as UCITS/AIFMD compliant investment companies under the Companies Act 2014 and UCITS/AIFMD compliant management companies established as LTD companies. The Act does not apply to funds established as Irish Collective Asset-management Vehicles (“ICAVs”), Unit Trusts or Common Contractual Funds (“CCFs”).

A significant change introduced by the Act is an obligation for investment companies to file annual audited financial statements with the Companies Registration Office (“CRO”). Investment companies had previously been exempt from this obligation due to detailed filing requirements they have with the Central Bank of Ireland. This change will apply to financial periods beginning on or after 1 January 2017. Find out more.


ESMA consults on money market funds rules

On 24 May 2017, the European Securities and Markets Authority (ESMA) published a Consultation Paper (CP) on the Money Market Funds Regulation (MMFR). The CP contains proposals on draft technical advice (TA), draft implementing technical standards (ITS), and guidelines under the MMFR. The key proposals relate to asset liquidity and credit quality, the establishment of a reporting template and stress test scenarios. Stakeholders are invited to provide their feedback on these proposals by 7 August.