Asset Management update - December 2015

Country-by-Country reporting

Country-by-Country reporting, as recommended in BEPS action 13, will be introduced in Finance Bill 2015. Large MNEs will be required to file a Country-by-Country report that they will provide annually and for each tax jurisdiction in which they do business the amount of revenue, profit before income tax and income tax paid and accrued.

It also requires MNEs to report their number of employees, stated capital, retained earnings and tangible assets in each tax jurisdiction. Finally, it requires MNEs to identify each entity within the group doing business in a particular tax jurisdiction and to provide an indication of the business activities each entity engages in. Country-by-Country reports will be disseminated through an automatic government-to-government exchange mechanism.

The implementation package included in the BEPS report sets out guidance to ensure that the reports are provided in a timely manner, that confidentiality is preserved and that the information is used appropriately, by incorporating model legislation and model Competent Authority Agreements forming the basis for government-to-government exchanges of the reports. Ireland will be an early adopter of Country-by-Country reporting.


UK Autumn Statement

The Chancellor of the exchequer has presented his UK Autumn Statement and its publication summarises some of the tax rates and allowances available for 2016/17. The figures contained in this publication are subject to amendment as the Finance Bill passes through parliament. Please click here to find out more


Irish Finance Bill 2015

The Finance Bill 2015 has been passed by the Irish Parliament (“Dail Eireann”). Please click here for a link to the latest legislation


Central Bank issues consultation paper CP99 on amendments to the AIF rulebook

On 30 November 2015, the Central Bank published CP99, a consultation on amendments to the AIF Rulebook. Many of the changes proposed are of a technical nature and several of the amendments seek to align with changes under the recently published Central Bank UCITS Regulations. Some of the changes proposed include:

  • a clarification which expressly provides the exemption from the QIAIF minimum subscription to AIFM group entities;
  • requirement for depositaries to always provide reporting on non-Irish authorised AIFs to which they provide services, even if another entity is separately reporting for these investment funds;
  • updating of the capital filing requirements section to align with submissions now made online and to align with the approach taken under the Central Bank UCITS regulations;
  • an extension of the requirements applying to QIAIFs with registered AIFMs during the start-up period to include the requirement to treat all investors fairly and the requirement to inform investors of any changes in respect of depositary liability;
  • alignment of the collateral rules for the RIAIF with those recently introduced for UCITS;
  • clarification that the requirement to hold minimum capital as eligible assets and in a separate account does not apply to an internally-managed AIF;
  • removal of all references to the issue of bearer shares in the AIF Rulebook;
  • requirement for AIFMs and AIF management companies to produce a second set of half-yearly accounts; and
  • clarification of the rules applicable to QIAIFs with non-EU AIFMs while the Central Bank awaits a decision on the AIFMD third country passport.


UCITS questions and answers 10th edition

On 30 November 2015, the Central Bank of Ireland published a Tenth Edition of the UCITS Q&A. New Question ID 1058 is added and ID 1050 has been amended. ID 1058 clarifies that a responsible person shall:

  1. ensure that the first annual or half-yearly report be prepared within 9 months of the launch of the UCITS fund and shall be published and submitted to the Central Bank of Ireland within 2 months if half-yearly or 4 months for annual; and
  2.  the first annual report shall be submitted to the Central Bank of Ireland within 18 months of the incorporation or establishment of that UCITS fund and shall be published within 4 months.”


FRED 62 – Draft amendments to FRS 102

The Financial Reporting Council (FRC) has recently published Financial Reporting Exposure Draft (FRED) 62 ‘Draft amendments to FRS 102 – Fair value hierarchy disclosures’. The FRED proposals are intended to simplify the preparation of disclosures about financial instruments for financial institutions and retirement benefit plans, whilst increasing consistency with disclosures required under European Union (EU) adopted IFRS that users of the financial statements will often be familiar with. Please click here to find out more


Get ready for IFRS 9 – classifying and measuring financial instruments

IFRS 9 (2014) 'Financial Instruments' (or the ‘Standard’) fundamentally rewrites the accounting rules for financial instruments. While the Standard is not effective until 1 January 2018, investment companies really need to start evaluating its impact now. Issue 1 of our series of publications on IFRS 9 aims to get you up to speed with the new Standard's classification and measurement requirements. Please click here to find out more