Asset Management

Asset Management update - June 2016

Central Bank of Ireland Markets Update

On 2 June 2016 the Central Bank of Ireland issued Issue 3 of its Markets Update for 2016. This Markets Update covered a wide range of updates and publication including:

  • CP86: Fund Management Company Effectiveness

Consultation Paper 86 (CP86) – Third consultation addresses managerial functions, operational issues and procedural matters.  It sets out the work already undertaken by the Central Bank of Ireland in relation to governance of fund management companies and outlines the proposed approach to compliance and super-visability issues.

Respondents are invited to comment on the proposed rules and guidance no later than 25 August 2016.

  • CP105: Consultation on Amendments to the Central Bank UCITS Regulations

Consultation Paper 105 (CP105) looks to obtain stakeholder feedback on amendments consequential on the implementation of UCITS V and certain technical amendments including correction of typographical errors. The technical amendments include a request for feedback on whether the requirements in relation to disclosure of open derivative positions in annual and half-yearly reports might be amended, particularly in circumstances where the disclosure can be lengthy and technical in nature.

Respondents are invited to comment on the proposed rules and guidance no later than 25 August 2016.

Find out more here

 

Thirteenth Edition of the UCITS Q&A

The Central Bank of Ireland published a thirteenth edition of the UCITS Q&A. The new questions added are: 

  • ID 1063 (UCITS Management Company - organisational effectiveness);  
  • ID 1064 (share class hedging); and
  • ID 1065-ID 1066 (Companies Act 2014). (ID 1065 was previously issued in the form of a general information note and included in the Markets Update published on 12 June 2015.) 

An existing question - ID 1013 - has been amended. This deals with past performance data and the heading of this section has been revised accordingly.  Find out more

 

CP99: Consultation on Amendments to the AIF Rulebook

The Central Bank of Ireland has published its feedback statement CP99: Consultation on Amendments to the AIF Rulebook. This summarises the responses received from responders along with the Central Bank’s comments and decisions. One particular response which may be of interest to AIFM’s and AIF management companies was the Central Bank’s confirmation that they will still require AIFMs and AIF management companies to produce a second set of half-yearly accounts. Find out more

 

Nineteenth Edition of the AIFMD Q&A

The Central Bank of Ireland published a nineteenth edition of the AIFMD Q&A. The new questions added are:

  • ID 1104 (Fund Management Company - organisational effectiveness);
  • ID 1105 (Rules - significant influence in the context of certain types of AIFs); and
  • ID 1106-ID 1107 (Companies Act 2014). (ID 1106 was previously issued in the form of a general information note and included in the Markets Update published on 12 June 2015.)

 

CMU Action on Cross-Border Distribution of Funds across the European Union
The European Commission is launching a consultation on the main barriers to the cross-border distribution of investment funds (UCITS and AIF) in order to increase the proportion of funds marketed and sold across the EU.

This consultation supports the creation of a Capital Markets Union (CMU), of which a key aim is to foster retail and institutional investment of investment funds. This consultation is part of the Action Plan package and builds upon the replies received to both the CMU consultation and the Commission’s recent Call for Evidence on the EU regulatory framework for financial services. Respondents are invited to comment before 2 October 2016. Find out more

 

Companies Act 2014: Directors Compliance Statements

A key provision of the Companies Act 2014 was the introduction of a requirement under Section 225 for certain incorporated companies to include in the annual report a Directors’ Compliance Statement (DCS).

UCITS investment companies set up as PLCs are in scope for the DCS while non-UCITS investment companies are not in scope. The requirement for the inclusion of a DCS applies for financial years beginning on or after 1 June 2015 i.e. UCITS PLCs with a 30 June 2016 financial year end will be required to include a DCS.

 

BEPS changes to the Transfer Pricing Guidelines

On 23 May 2016, the OECD Council approved the amendments to the Transfer Pricing Guidelines for Multinational Enterprises ("Transfer Pricing Guidelines"), as set out in the 2015 BEPS Report on Actions 8-10 "Aligning Transfer Pricing Outcomes with Value Creation" and the 2015 BEPS Report on Action 13 "Transfer Pricing Documentation and Country-by-Country Reporting".

These amendments provide further clarity and legal certainty about the status of the BEPS changes to the Transfer Pricing Guidelines, which were endorsed by the Council on 1 October 2015, by the G20 Finance Ministers on 8 October 2015 and by the G20 Leaders on 15-16 November 2015.

The amendments approved by the Council translate these BEPS transfer pricing measures into the Transfer Pricing Guidelines, as well as into the Recommendation of the Council on the Determination of Transfer Pricing Between Associated Enterprises [C(95)126/FINAL], which now contains a reference in the Preamble to these BEPS Reports. Given the way in which the Transfer Pricing Guidelines are integrated into the domestic law of certain countries, including by direct reference to the Guidelines themselves, this update process further clarifies the status of the BEPS changes to the Transfer Pricing Guidelines.

 

EU Audit Directive

On 16 June 2016 the European Union (Statutory Audits) (Directive 2006/43/EC, as amended by Directive 2014/56/EU, and Regulation (EU) No 537/2014) Regulations 2016, S.I. No. 312 of 2016, was published by the Minister for Jobs, Enterprise and Innovation. These Regulations take effect from 17 June 2016 and have far reaching effects on the audit of Public Interest Entities in the European Union. See our EU Audit Reform publications here:

Audit Firm Rotation

Non-Audit Services